SPAC Formation
SPACs raise $200M-$500M through IPOs as "blank check" companies, with 18-24 months to find targets. Funds remain in trust until merger completion or investor return.
01
IPO & Trust Structure
Institutional capital raised with 90-100% held in trust accounts, providing downside protection during target search phase.
02
Regulatory Framework
SEC registration and exchange listing establish credibility while sponsor equity promotes align interests with successful deal completion.