Bernard Arnault: Europe’s richest man is joining the SPAC craze

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Arnault’s investment holding company Financière Agache is joining forces with French asset manager Tikehau Capital and two high profile European bankers to launch a special purpose acquisition company (SPAC) that is hunting for deals in the European financial services sector.

Tikehau Capital said in a statement on Monday that potential targets include wealth management platforms, fintech companies, insurance services and diversified financial services firms. The focus will be on “scalable platforms with strong earnings growth potential,” it added, indicating that this will be the first of several SPACs it plans to launch.

Jean-Pierre Mustier, the former CEO of the Italian bank UniCredit UNCFF, and Diego De Giorgi, a former head of global investment banking bank of America BAC Merrill Lynch, will be the company’s operating partners, Tikehau Capital said.
While GameStop is buzzing, a hot part of the market is getting even hotter
SPACs, or “blank check” companies, raise capital through an IPO to buy existing companies. Once an obscure part of the market, they have become extremely popular. Last year, 229 SPACs in the United States raised $ 76 billion, down from just $ 13 billion in 2019, according to Goldman Sachs. A wave of new signups this year – including from former San Francisco 49ers quarterback Colin Kaepernick and Rocket Internet co-founder Oliver Samwer – indicates that the pace is not slowing down.
While European stock markets have largely missed the boom so far, there are early signs that the market in the region is starting to take off.

Tikehau Capital has not provided details on the amount the SPAC is trying to raise, saying only that the four sponsors plan to jointly invest at least 10% of that amount. Arnault has a net worth of $ 114 billion, making him the fourth richest person worldwide and the richest person in Europe, according to the Bloomberg Billionaires Index.

The SPAC will IPO in Amsterdam, the latest in a series of wins for the Dutch city fair. Euronext Amsterdam is one of the biggest beneficiaries of changes that mean that EU financial institutions will not be able to trade European equities on UK stock exchanges after Brexit.

– Julia Horowitz contributed reportg.

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