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Apollo-Backed SPAC Strikes Deal as Goldman Raises Bubble Concerns

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A special purpose acquisition company backed by Apollo Global Management has become one of the latest blank-check companies to announce a merger, providing details of the $1.3 billion deal just as Goldman Sachs Group warned of “bubble-like sentiment” in the SPAC market.

Apollo-sponsored blank-check company Spartan Acquisition Corp. II announced Monday that it has agreed to merge with solar financing business Sunlight Financial. The deal includes Chamath Palihapitiya, Coatue Management, and BlackRock as investors. When the merger is completed, the solar financing business will become a public company renamed Sunlight Financial Holdings. 

The deal follows a flurry of SPAC activity in the first weeks of 2021, with black-check companies completing 56 initial public offerings to raise a total $16 billion in their pursuit of mergers, according to a Goldman portfolio strategy research report from the evening of January 22. Goldman called 2020 the “Year of the SPAC,” as the total $76 billion raised from 229 U.S. blank check companies was six times higher than in 2019.

Apollo-sponsored Spartan Acquisition Corp. II announced last year that it priced its IPO at $10 a unit in November, raising $300 million. The SPAC expects to complete its merger with Sunlight, a fintech platform that offers solar loans to homeowners, in the second quarter. 

Read more at www.institutionalinvestor.com

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