Wall Streets Introduces A New Way Of Raising Money

Billionaire and Chairman of luxury goods group LVMH (LVMHF), Bernard Arnault, has also joined Wall Street’s hot new way to raise money.

Arnault’s Investment Holding Organization Financière Agache is uniting with French asset manager Tikehau Capital and two prominent European investors to dispatch a particular purpose acquisition organization (SPAC) that will chase for deals in Europe’s financial service area.

According to Tikehau Capital, that potential targets incorporate asset management platforms, fintech firms, insurance services and diversified financial services companies. The focus will be on scalable platforms offering strong profit growth potential, indicating that this will be the first of several SPACs it plans to launch.

Jean-Pierre Mustier, the former CEO of Italian bank UniCredit (UNCFF), and Diego De Giorgi, a former head of international investment banking at Bank of America (BAC) Merrill Lynch, will be the working in partnership with the organization, Tikehau Capital has revealed.

SPACs, or organizations that exists exclusively to converge with or procuring another entity to raise capital through an IPO to purchase existing organizations. They were at one time a dark part of the market yet have detonated in prevalence.

In 2020, 229 SPACs in the United States raised $76 billion, up from just $13 billion of every 2019, as per Goldman Sachs. A spate of new filings this year — including from previous San Francisco 49ers quarterback Colin Kaepernick and Rocket Internet prime supporter Oliver Samwer — demonstrates the speed isn’t easing up.

Meanwhile, Tikehau Capital is yet to give subtleties on the sum its SPAC is trying to raise, however the four patrons plan to all in all contribute at any rate 10% of that sum. Bernaud Arnault has a total assets of $114 billion, making him the fourth richest person in the world and in Europe, as per the Bloomberg Billionaires Index.

The SPAC will IPO in Amsterdam, the latest in a series of wins for the Dutch city’s exchange. Euronext Amsterdam is one of the biggest beneficiaries from changes that mean EU financial institutions cannot trade European shares on UK exchanges after Brexit.

Bernard Jean Étienne Arnault is a French billionaire businessman and art collector. He is the chairman and chief executive of LVMH Moët Hennessy – Louis Vuitton SE, the world’s largest luxury-goods company. In April 2018, he became the richest person in fashion, topping Zara’s Amancio Ortega.