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The SPAC trend is starting to dial back because there's a finite number of private companies that are ready to go public and even fewer that have reached unicorn status with the potential to go public on their own. (Credit: T.Dallas/Shutterstock) The SPAC trend is starting to dial back because there’s a finite number of private companies that are ready to go public and even fewer that have reached unicorn status with the potential to go public on their own. (Credit: T.Dallas/Shutterstock)

I work as an underwriter at Argo Pro, the professional liability business at specialty insurer Argo Group. This segment of Argo underwrites all types of business, my team, however, is focused on private equity and venture capital companies. Within our focus areas, we’re seeing the SPAC trend change how we underwrite risk and understand exposures. “SPAC” refers to a special purpose acquisition company, also known as blank-check company because it strictly exists to acquire another company then take it public.

Investor demand in SPACs appeared to peak in early 2021, when an average of 21 SPACs came to market each week with about $6 billion in capital. That amounted to a total of 93 deals worth $233 billion in the first quarter of 2021.

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