A deal-making FBvian points us to a ditty (sub. req. for full article) in today’s Journal that analyzes Hicks’ special-purpose acquisition company (called a SPAC, don’t you know). The meat:
Hicks Acquisition Co. I, a special-purpose acquisition company, sold $552 million of stock last week. SPACs raise money, then go on the prowl to purchase companies. Investors like them. But it’s hard to see why. Investors in Hicks are essentially betting on Mr. Hicks’s reputation as a deal maker. That track record is so-so. His 1994 buyout fund returned 19% annually. But his 1997 fund is posting negative returns, according to Calpers. Moreover, even successful buyout barons may have trouble finding attractive targets.