Investment Banking

Goldman Sachs CEO says the Spac boom is not ‘sustainable’

Spacs, or blank cheque companies, have surged to unprecedented levels as the pandemic upends markets

Goldman Sachs chief executive David Solomon that while the bank aims to rank number one in the investment banking rankings "we do not strive to be number one in the Spac league tables"
Goldman Sachs chief executive David Solomon that while the bank aims to rank number one in the investment banking rankings "we do not strive to be number one in the Spac league tables" Photo: Simon Dawson/Getty Images

The unprecedented boom in so-called blank cheque companies that has allowed big investment banks to haul in billions in fees is not likely to continue this year, according to Goldman Sachs chief executive David Solomon.

The level of activity for launches of Special purpose acquisition companies, or Spacs, which raise money through initial public offerings to fund acquisitions, is not "sustainable in the medium term", Solomon said on a conference call accompanying Goldman's fourth-quarter results.

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