Thursday , March 4 2021

Bernard Arnault: Europe’s richest man joins the SPAC craze



Arnault’s investment holding company Financière Agache is joining forces with French asset manager Tikehau Capital and two prominent European bankers to launch a special purpose vehicle (SPAC) that will chase business in the European financial services sector.

Tikehau Capital said in a statement Monday that potential targets include asset management platforms, fintech companies, insurance services and a variety of financial services companies. The focus will be on “scalable platforms that offer strong profit growth potential,” he added, noting that this will be the first of several SPACs he plans to launch.

Jean-Pierre Mustier, former CEO of an Italian bank UniCredit (UNCFF)and Diego De Giorgi, former head of global investment banking at American bank (BAC) Merrill Lynch will be the company’s operating partners, Tikehau Capital said.
As GameStop disappears, one hot part of the market gets even hotter
SPACs or companies with a “blank check” raise capital through an IPO to buy existing businesses. They used to be an obscure part of the market, but they exploded in popularity. Last year, 229 SPACs in the United States raised $ 76 billion, up from just $ 13 billion in 2019, according to Goldman Sachs. A series of new reports this year – including former San Francisco 49ers striker Colin Kaepernick and Rocket Internet co-founder Oliver Samwer – suggest the pace is not slowing.
Although European stock markets have so far largely failed to flourish, there are early signs that the market in the region is starting to take off.

Tikehau Capital did not provide details on the amount its SPAC wants to raise, saying only that the four sponsors plan to jointly invest at least 10% of that amount. Arnault has a net worth of $ 114 billion, making him the fourth richest person in the world and the richest individual in Europe, according to the Bloomberg Billionaires Index.

The SPAC will carry out an IPO in Amsterdam, the latest in a series of victories to exchange the Dutch city. Euronext Amsterdam is one of the biggest beneficiaries of the changes, which means that EU financial institutions cannot trade European stocks on British stock exchanges after Brexit.

– Julia Horowitz contributed to the reportingMr.


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