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Bill Foley Is Latest SPAC Titan to Shut Down and Return Billions

Bill Foley, a veteran of SPAC transactions, is the newest titan of the sector to declare retirement while attempting to repay investors for the roughly $2.1 billion he raised for two different projects.

Austerlitz Acquisition Corporation II, which raised $1.38 billion, and Austerlitz Acquisition Corporation I, which raised $690 million, plan to close by the end of the year, according to an SEC filing Monday.

The sponsors, who assisted in at least four successful mergers of special-purpose acquisition companies, partially attributed the choice to the weak initial public offering (IPO) and SPAC markets.

Foley joins "SPAC King" Chamath Palihapitiya and billionaires Bill Ackman and Sam Zell in abandoning their vehicles this year.

According to statistics gathered by SPAC Research, at least 22 blank checks have been liquidated in 2022, more than double the quantity witnessed over the five years prior.

The Foley-led sponsoring team wants a shareholder vote next month and will disband as soon as feasible if approved. Both SPACs expect a $10 per-share return.

SPACs are referred to as "blank checks" since they employ IPO proceeds to fund the public offering of an unnamed company.

The final sponsor to give up will not be Foley. According to SPAC Research, about 550 SPACs are still looking for targets to invest the roughly $145 billion in capital they have raised.

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