Goldman Sachs Group Inc has come up with a new offering that allows investors to bet on special purpose acquisition companies (SPACs), its latest attempt to capitalize on the dealmaking trend, people familiar with the matter said.
The Goldman Sachs company logo is seen in the company's space on the floor of the New York Stock Exchange, in New York, U.S., April 17, 2018. REUTERS/Brendan McDermid/File Photohas come up with a new offering that allows investors to bet on special purpose acquisition companies , its latest attempt to capitalize on the dealmaking trend, people familiar with the matter said.
One of the sources, however, said Goldman Sachs has so far only arranged a handful of these products, referred to as "SPAC-linked structured notes." Investors also receive a payout based on the SPAC stocks' performance at the end of the two years, the sources said. If they are willing to take on more risk to juice their returns, they can also borrow from Goldman to add leverage to the offering, but have to pay the bank back for any losses, the sources said.The boom in the SPAC market, whose size has reached $137.4 billion last month from $13.
Investors are allowed to bet on the shares of SPACs where Goldman Sachs bankers had a deal role, the sources added. SPACs sponsored by Goldman Sachs are excluded.
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