Special purpose acquisition companies, or SPACs, were big business in 2021 when everyone from lifestyle mogul Martha Stewart to politicians like Paul Ryan was investing in them. Also known as blank check companies, SPACs offered firms a back door route to becoming a public company by getting acquired by a shell company. But the 2021 trend didn’t last long as more than 60% of blank check companies from that year couldn’t complete a merger and had to return money to investors, giving SPACs a dodgy name in the process. Now, blank check companies have returned, but this year’s crop is a different breed. The celebrities are gone, the buzz has faded, and many SPACs are coming from serial sponsors who are, well, just a little dull.
So far in 2025, 61 blank check companies have gone public, raising $12.4 billion as of June 26, though it’s hard to assess their success since it typically takes months for a SPAC to complete an acquisition. This compares to just 16 SPACs for the same period last year that collected $2.5 billion, according to Dealogic. So far none of this year’s deals have found a merger partner.
The $12.4 billion is the most raised by blank check companies since 2021, when the SPAC market was on fire. That year, a record 613 blank check companies went public, raising about $162.6 billion in proceeds.
SPACs are enjoying “a bit of a revival,” said Ben Kwasnick, founder of SPAC Research. Blank check companies are on track this year to raise $25 billion, a nearly 85% drop from 2021, but a total Kwasnick thinks is more sustainable. “There’s still huge demand for the SPAC market,” he said.
A closer look shows that SPACs never really left. But their disappointing outcome cast a pall on the sector and drove many investors away. Blank check companies typically have between 18 to 24 months to buy a company, or they must return the money to investors. Roughly 39% of the Class of 2021 was able to complete a merger, or de-SPAC, according to SPAC Research. This led to many deals that initially traded well but then crashed. One of the more famous was BuzzFeed’s combination with a blank check company in December 2021. BuzzFeed initially spiked to $14.77 from $10 a share and ended its first day as a public company down 11%. The stock currently trades at $2 a share.
Still, some investors of 2021 SPACs were able to get their money back. There were many blank check companies in 2021 chasing a small number of acquisitions, said Stephen Ashley, a partner with law firm Pillsbury Winthrop Shaw Pittman. When they couldn’t complete a merger before their deadline, the SPACs were forced to liquidate. Some investors also redeemed their shares before the blank check company completed a merger. Both groups got their money back, Ashley said. “A large number of these investors may be willing to consider investments in another round of SPACs with more seasoned sponsors,” he said.
Of course, some 2021 investors held onto their shares after a SPAC completed its merger with a business and ended up owning stock in the surviving entity, though many of them likely lost money. Most deals that closed in 2021 are trading below $10, the price that SPACs typically price at, said Kwasnick of SPAC Research.
“These investors will be more wary,” Pillsbury’s Ashley said.
In 2024, the SEC adopted new rules for SPACs, requiring them to provide more disclosure about items including conflicts of interest, sponsor compensation, and dilution. They also limited the use of forward-looking statements by SPACs. “The SEC clearly had concerns about the performance of SPACs for a while leading up to the rule changes, and the final rules they settled on will probably focus market participants on better and more grounded disclosure,” Ashley said.
Dull is good
SPACs, as we know them, have been around since at least the early 1990s. This year’s class is coming from executives who are very experienced. Instead of Jay-Z pitching a cannabis blank check company or Colin Kaepernick’s social justice SPAC, there’s Michael Klein, a former Citigroup banker, who launched his tenth blank check company, Churchill Capital X, earlier this year. Or Gores Holdings X, the latest SPAC from private equity firm The Gores Group, which raised nearly $360 million in May.
Some of this year’s SPAC crop, though, are connected to prominent individuals. This includes Renatus Tactical Acquisition, which raised $241.5 million in May and has ties to Trump Media & Technology Group. Eric Swider, CEO of Renatus, is the former head of Digital World Acquisition, the SPAC that merged with Trump Media, the parent of Truth Social, in 2024. Devin Nunes, Renatus’s chairman, is a former Republican congressman and the current CEO of Trump Media. (After completing its SPAC merger in September 2024, Trump Media, during its debut, peaked at $79.38, then experienced volatility and is trading at about $18 a share.)
“It’s encouraging to see serial sponsors doing most of this year’s IPOs, as they’re likely more realistic about their prospects than first-time sponsors are,” said Kwasnick.
The banks underwriting this year’s SPACs are another big change. In 2021, bulge bracket firms like Goldman Sachs and Morgan Stanley worked on many of the blank check offerings but have largely left the sector.
Citi and UBS were No. 1 and No. 2 in terms of SPAC underwriters in 2021. Neither bank completely exited the SPAC market, but both pulled back significantly. Citi worked on 113 deals in 2021, giving it bragging rights as the top SPAC banker. This year, Citi has only two SPACs to its credit. UBS has worked on one or two blank check transactions every year since 2021 when it underwrote 92 transactions. This year, UBS has only worked on one SPAC.
These rankings might still change. Goldman is wading back into the market for SPACs and is open to underwriting new deals for SPAC companies, Bloombergreported on June 17. Goldman declined to comment.
Without the bulge bracket firms, lesser-known banks have emerged to take their place. This year’s lead underwriter so far is Cantor Fitzgerald, the financial services firm formerly led by U.S. Commerce Secretary Howard Lutnick. Cantor has worked on 14 deals valued at around $3.6 billion. BTIG, the broker backed by Goldman and Blackstone, ranked second with a dozen SPAC deals valued at $2.6 billion. And in third place is Santander, the Spanish bank, which has worked on five deals this year, totaling $1.3 billion.
Not everyone is happy with the revival. “I hate SPACs,” said one fintech banker, who has worked on mergers involving blank check companies. They pointed to payments companies like Repay, Payoneer Global, and Paysafe. Each used SPACs as a way to go public and two of the three are trading below $10. All three companies have experienced volatility with their stock prices, and all three have been up for sale recently. “They’re just not performing well,” the banker said of the payments companies. “I’ve made money off [of SPACs] but I don’t really understand their purpose.”
Swollen legs led to President Donald Trump being diagnosed with what’s called chronic venous insufficiency. It’s a fairly common condition among older adults but requires a thorough checkup to rule out more serious causes of swelling in the legs. Here are some things to know.
What is chronic venous insufficiency?
Chronic venous insufficiency, or CVI, happens when veins in the legs can’t properly carry blood back to the heart. That can lead to blood pooling in the lower legs. In addition to swelling, usually around the feet and ankles, symptoms can include legs that are achy, heavy feeling or tingly, and varicose veins. Severe cases could trigger leg sores known as ulcers.
What causes chronic venous insufficiency?
Overcoming gravity to pump blood from the feet all the way up to the heart is a challenge, especially when someone is standing or sitting for long periods. So legs veins are lined with one-way valves that keep blood from sliding backward on that journey. Anything that damages those valves can lead to chronic venous insufficiency. Risk factors can include blood clots, vein inflammation known as phlebitis or being overweight.
How is chronic venous insufficiency diagnosed and treated?
Doctors must rule out serious causes of leg swelling, such as heart problems, kidney disease or blood clots. Ultrasound exams of the leg veins can help confirm chronic venous insufficiency. According to the Cleveland Clinic, treatment can include wearing compression stockings, elevating the legs and achieving a healthy weight. Also exercise, especially walking, is recommended — because strong leg muscles can squeeze veins in a way that helps them pump blood. Medications and medical procedures are available for more advanced cases.
Introducing the 2025 Fortune 500, the definitive ranking of the biggest companies in America. Explore this year’s list.
The merger discussions began during the first quarter of this year, according to a person familiar with the talks who isn’t authorized to discuss them publicly. It would combine the largest and smallest of the country’s six major freight railroads.
Both railroads declined to comment.
Within the industry there is widespread debate over whether such a merger would be approved by the Surface Transportation Board even though those regulators approved the deal that created CPKC railroad two years ago with the Canadian Pacific’s $31 billion acquisition of Kansas City Southern railroad.
That merger combined the two smallest major railroads in North America and left only six major freight railroads. But it was the first major rail merger approved in more than two decades.
The bar for railroad mergers in the U.S. was raised substantially at the start of the century after a disastrous combination of Union Pacific and Southern Pacific in 1996 that snarled rail traffic for an extended period, followed by the 1999 split of Conrail between Norfolk Southern and CSX, which created backups in the East.
To be approved, any major rail merger must show it will enhance competition and serve the public interest under the 2001 rules. The CPKC merger was not judged under those rules because Kansas City Southern had an exemption from them as the smallest major freight railroad at the time.
Union Pacific CEO Jim Vena talked earlier this year about the potential benefits of such a merger because it would streamline deliveries all across the country by eliminating the delays that come along with one railroad handing shipments over to another. Plus it would simplify shipping for the companies that rely on railroads to deliver their raw materials and finished products.
But in the past, some shippers have raised concerns about the consequences of being left with even fewer options to ship their goods because the major railroads are already so powerful.
Some investors have long argued that the industry should eventually consolidate down to two East-West railroads crossing the United States alongside the two railroads that already cross Canada. But regulators have been skeptical and taken a cautious approach. Any proposed deal would face a lengthy STB review. That board is currently evenly split between two Republicans and two Democrats with one seat open.
Citi Research analyst Ariel Rosa said in a research note that a major transcontinental railroad merger “would likely prove costly and time consuming, risking a years-long distraction to management, while facing significant pushback from regulators, politicians, employee unions, competitors, customers, and other stakeholders.”
Union Pacific, which is based in Omaha, Nebraska, generated $24.3 billion revenue last year as its more than 30.000 employees delivered freight all across the western United States. Norfolk Southern reported $12.1 billion revenue and has roughly 20,000 employees and its headquarters is in Atlanta.
Norfolk Southern stock gained 3.7% during the day Thursday and rose another 4.7% to hit $282.50 in after-market trading following the Journal’s story.
Being in the C-suite is a high-pressure job with long hours, board responsibilities, and intense scrutiny. But what is it like to be a top executive when you’re off the clock?
Fortune’s series, The Good Life, shows how up-and-coming leaders spend their time and money outside of work.
Today, we meet Ed Fuller, the 35-year-old founder and CEO of the marketing agency, Media Bodies.
Fuller fell into the world of marketing by accident. He started at Uproot, heading up brand partnerships and celebrity endorsements—mainly, he admits, to score free tickets to summer music festivals. “I did end up getting about 50 of them,” Fuller says. “But I also had my lightbulb moment for Media Bodies.”
It wasn’t just that everyday creators were suddenly becoming influencers and moving the needle for brands. He also noticed founders were doing something else too: travelling, networking, and pursuing creative experiences under the guise of ‘work’. He wanted in.
So he used his spare time to land his own clients, and soon started side-hustling for American Express, managing its U.K. Facebook page.
Clients have ranged from football legend Thierry Henry to MrBeast and Zoe Sugg, the company claims.
“In the initial stages, I completely made it up as I went, licensing music from Warner and Universal to get tracks from the likes of Michael Buble and Jessie J to drive engagement across AMEX’s Facebook page,” he adds.
But that one client gave him the confidence—and the cash flow—to launch Media Bodies in 2013.
Since then, the company has gone from a solo operation to a 30-person team, with over 100 brands on its roster and four straight years of 100% growth. Clients have ranged from football legend Thierry Henry to MrBeast and Zoe Sugg, the company claims. Last year, it bagged the U.K. Government’s Made in the U.K., Sold to the World award which celebrates the global success of small British businesses.
Now, Fuller splits his time between London and Barcelona, leads a fully remote team, and has—full circle—built a life that includes the travel and creative freedom that first drew him to the industry.
The finances
What’s been the best investment you’ve ever bought?
I’ve invested over $100k in getting training and internal onboarding and upskilling resources from some of the best industry experts, and that has skyrocketed the company’s growth.
And the worst?
I wouldn’t say this was a bad investment, just bad timing.
I was in the process of starting up another sport-tech app business, but it was just when Media Bodies was really taking off.
Ultimately, it was a case of stretching myself too thin and risking both, so I shelved that project for some time in the future to focus on Media Bodies.
How do you commute to work?
We have a hybrid working arrangement, so some days, I simply walk one room over into my home office.
The days we go into the office, if I’m heading to the local office, I’ll walk it, or if we’re heading down to a different branch, I’ll take the train.
What personal finance advice would you give your 20-year-old self?
Get an accountant. You’ll save a lot more time and money than you will trying to figure out everything yourself.
Don’t try to start a business with just interns. Invest in surrounding yourself with knowledgeable people so you can learn to lead better.
Invest in quality. Whether it’s a tool that improves your productivity, hardware, or even material things like shoes or clothes, you’ll save so much time and money in the long run even if the costs seem steep at first.
What’s the one subscription you can’t live without?
Spotify. I’m a big music fan, and listen to a lot of podcasts for work and general self-improvement! It’s the perfect balance of something that serves my needs for business and pleasure.
Where’s your go-to wristwatch from?
Raymond Weil.
The necessities
How do you get your daily coffee fix?
I don’t drink coffee!
What about eating on the go?
I always try to eat healthy. Since we work hybrid, eating on the go isn’t often, maybe once or twice a week. And in those cases, I’ll probably get something like a salad bowl. I tend to prefer Asian food (Japanese, Vietnamese, or Thai) because they tend to have more nutritious options and I generally really enjoy the cuisine!
“Invest in quality. Whether it’s a tool that improves your productivity, hardware, or even material things like shoes or clothes, you’ll save so much time and money in the long run even if the costs seem steep at first.”Ed Fuller
Where do you buy groceries?
When in the U.K., a Sainsbury’s, or if I’m in Barcelona, Mercadona.
Where do you shop for your work wardrobe?
My go-to brands for my work wardrobe are Reiss or Boggi Milano.
Are you the proud owner of any futuristic gadgets?
The closest might be an Oura ring. I got it to help track my sleep and anxiety.
It’s definitely been an interesting investment. It’s great to add perspective to how the body and mind are connected and identify personal patterns so I can make more mindful decisions and choices that are suitable specifically for my biology instead of following more generic wellness advice.
The treats
How do you unwind from the top job?
Physical movement is a must for me! Whether it’s the gym, a run, a swim, or a hike, I find staying active or just getting out in nature is a great way to unwind.
I also like to practise meditation, or watch sport and sport documentaries!
What’s the best bonus treat you’ve bought yourself?
Probably a really nice sound system for my home.
Take us on holiday with you, what’s next on your vacation list?
I travel for work quite often, so I get a little taste of different cultures and cities on and off.
But my next vacation spots are Morocco and New York later in the year.
I’m really keen to soak up the history, culture, and landscapes of both—they are guaranteed to be unique but rich experiences!
Fortune wants to hear from leaders on what their “Good Life” looks like. Get in touch: orianna.royle@fortune.com
Politics8 years ago