Wilbur Ross, who served as U.S. Commerce Secretary during all of former President Trump's term, has turned his attention to the booming market for blank check companies, or SPACs.
Driving the news: Ross will serve as president, chairman and CEO of a new SPAC that seeks to raise $345 million in an IPO. Among those on its board of directors is Larry Kudlow, Trump's former chief economic adviser who recently joined Fox Business Channel to host a new program.
Between the lines: SPACs seek to raise money from public market investors, and then use that capital to help purchase a private company.
- Once the purchase is complete, the acquired company becomes publicly traded.
- Already in 2020, 100 SPACs have completed IPOs, raising over $29 billion.
Ross, who made his fortune as a private equity investor, is joined on his SPAC by some executives from private equity firm BroadPeak Global.
- Many SPACs target specific industries, but this one appears to be sector agnostic.
