Drew Bernstein, co-chairman of MBP, was exclusively featured in Forbes.com regarding why SPACs are chasing China deals and the opportunities for Chinese companies.
By Russell Flannery, Forbes Staff Asia
Chinese companies have strong revenue growth, are highly innovative, have a sizable addressable market, are disrupting business categories, and are even creating new ones. These are the types of companies that investors covet and will heavily compete to acquire. All the major SPACs are chasing targets in China right now — especially those with pressure to close this year.
China is watching the U.S. market closely. China’s big opportunity is for Chinese companies to be prime targets for sponsors. I expect that China will start to form its own SPACs once it sees the results of the current SPAC market, and the share of China-backed SPACs will significantly shift upward. Additionally, the chase to target Chinese companies will become especially tight once Chinese SPACs sponsors begin to form at a higher clip, which again will be dependent on the early success of the U.S. SPACs.