2008 Pivotal Year for SPAC Market, According to SPAC Research Partners 'State of...

2008 Pivotal Year for SPAC Market, According to SPAC Research Partners 'State
of the SPAC' Report
SPAC IPOs Will Decline 10% in 2008 While Overall Market Grows 30%

NEW YORK, April 3, 2008 /PRNewswire/ -- The coming year will be pivotal in
defining the future of Special Purpose Acquisition Companies (SPACs),
according to a new report, "State of the SPAC" by SPAC Research Partners, an
independent research firm dedicated to providing investors with timely,
accurate SPAC analysis. SPACs are publicly listed blank check companies with a
mandate to acquire a business usually within an 18 or 24 month time period.
Market forces, more experienced sponsors, better-capitalized underwriters
and demand for higher quality acquisitions are quickly pushing SPAC deal
structures into their sweet spot. According to "State of the SPAC," the number
of SPAC IPOs will decline 10% in 2008 while the average SPAC size is expected
to increase 45%, to $265 million. According to SPAC Research Partners, the
ideal SPAC size is between $300 million and $400 million.
"SPACs that have completed acquisitions on the average posted a 6.9%
decline in stock price since August 2003, compared to an increase of 36% for
the S&P 500 Index," commented Raj Nandiwada, SPAC Partners Senior SPAC
Analyst. "We believe historically lower quality sponsors, overpaying for
target assets, and structural disadvantages of older generation SPAC dilution
have created challenges that are currently driving a revolution in the SPAC
market."
Combined with weakened capital markets, this revolution is fueling a
flight to quality for SPAC investors. More SPACs are being voted down in 2008
compared to 2007. According to "State of the SPAC," 25% of all SPACs in 2008
will be voted down and a significant portion will be forced to alter their
terms.
Based on initial investor reaction, SPAC Research Partners believes two
recent acquisition announcements are likely to be restructured from their
original terms. Alternative Asset Management Corp., which announced the
acquisition of Halcyon Asset Management on March 13 for $974 million, and
Marathon Acquisition Corp.'s $1 billion acquisition of Global Ship Lease,
Inc., are likely to be restructured in the industry's continued flight to
quality. SPAC RP's proprietary warrant pricing models indicate there is only
40% chance of the Marathon acquisition closing and only a 33% probability for
Alternative Asset Management Corp.
"More than 90 registration statements have been filed by SPACs this year,
yet only 12 SPACs have successfully gone public," noted Michael Tew, SPAC
Research Partners Senior Analyst. "SPACs are here to stay, but 2008 will be a
critical year in determining the industry's future growth potential."
Highlights from SPAC Research Partners' "State of the SPAC" Report:

Deal Flow Characteristics for 2008
-- SPAC IPOs down 10% but 30% increase in total capital raised.
-- Investors are looking more closely at SPAC deals to find the diamond in
the rough.
-- More SPACs are being voted down in 2008 vs. 2007; 25% of all SPACs in
2008 will be voted down and a significant portion will be forced to
restructure with more attractive terms for investors.
-- $265 mm average SPAC size (up 45% from 2007).
-- $15.8 billion in total SPAC IPO value (up 30% from 2007).

5-Year CAGR Growth in the Market
-- Total market grows 21% per year from 2007 - 2012, reaching $32 billion
in total IPO issuance in 2012
-- Total number of SPAC IPOs grows 7% per year to 93 in 2012, up from 66
in 2007
-- Average size of SPAC grows 13% per year to $346 million, up from $183
million in 2007

For more information about SPAC Research Partners and for full copies of
"The State of the SPAC," please email Michael Tew, Senior SPAC Analyst, at
michael@spacpartners.com or Julie Ricciardi, Director of Institutional Sales
at Julie@spacpartners.com.
About SPAC Research Partners
Founded in March 2008 and based in Palo Alto, California, SPAC Research
Partners is an independent research firm dedicated specifically to the SPAC
market. The company provides independent, proprietary, value-added analysis of
SPACs in order to enhance portfolio managers' ability to effectively evaluate
a SPAC deal from registration statement to the closing of an acquisition (or
fund liquidation). The company's products include its unique "Red Flag"
reports, commentaries, and weekly Warrant Probability Reports. Combined with
an experienced team of SPAC analysts, SPAC RP's innovative and proprietary
models provide investors with detailed and timely analysis at each stage of
the SPAC Life Cycle. For more information, please visit www.spacpartners.com.

Contact: Michael Tew
Senior SPAC Analyst
+1 917 669 7473
michael@spacpartners.com

SOURCE SPAC Research Partners

Michael Tew, Senior SPAC Analyst, SPAC Research Partners, +1-917-669-7473,
michael@spacpartners.com