Investors can now bet on SPACs in innovative ways with Goldman Sachs

Goldman Sachs Group Inc, an American multinational investment bank and financial services company in New York, has approached investors to bet on special purpose acquisition companies (SPACs). its latest attempt to capitalize on the deal-making trend, people familiar with the matter said.

SPAC, or a special purpose acquisition company, is another name for a “blank check company,” meaning an entity with no commercial operations that completes an initial public offering (IPO).

According to some sources, the product is formed as a two-year bond that pays interest and gives investors exposure to SPACs without owning them. It could appeal to institutional investors seeking regular income through many SPAC portfolios.

The bank is making money by providing financing to investors to participate in the product and keep some returns on SPAC shares for itself, depending on how well they perform.

Goldman Sachs has declined to comment on product details.

Global Business Magazine

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