Paul Singer
Photographer: Misha Friedman / Bloomberg
Photographer: Misha Friedman / Bloomberg
Elliott Management Corp., a hedge fund known for its activist shareholder campaigns, is meeting with bankers to raise more than $ 1 billion to fund a special-purpose acquisition company, Dow Jones reported Sunday.
The process is at an early stage and plans may change, Dow Jones said, citing people familiar with the issue who have not been identified. Elliott, founded by billionaire Paul Singer, could use the proceeds to buy a company with potential of $ 2 trillion, based on similarly sized SPAC targets that agreed to the deal, the report said.
Once an obscure investment vehicle, SPACs raised $ 83 billion on U.S. stock markets in 2020, accounting for about 46 percent of all initial public offerings, according to data compiled by Bloomberg. This year, at least 117 SPACs have already raised over $ 35 billion, set for another record year. SPACs raise funds to fund merger and acquisition opportunities.
It’s unclear what sectors Elliott could be in, Dow Jones said.
Elliott, with more than $ 45 billion in assets under management, has been agitating for changes at some of the world’s largest and most important companies, including Twitter Inc., Softbank Group Corp., AT&T Inc. and other.