
Frequently Asked Questions
What is a SPAC?
A Special Purpose Acquisition Company (SPAC) is a shell company formed to acquire or merge with an existing private company, taking it public in the process.
Who are SPAC sponsors?
Most SPACs are formed by institutional investors, such as hedge funds, private equity firms or venture capital firms and executives with prior experience in the capital markets and industries that the SPAC has targeted.
What makes a SPAC attractive to investors?
An investment in a SPAC IPO is often attractive to investors because it can offer the upside of investing in a high-growth target company with downside protection since shares sold in the IPO may be redeemed at the time of the de-SPAC closing if the investor does not like the deal.
Why do companies choose to go public through a SPAC rather than an IPO?
One of the principal advantages of a SPAC transaction, as compared to an IPO, is speed. In general, a SPAC transaction can be completed more quickly than an IPO. Maybe more importantly, the pricing of a SPAC transaction occurs relatively early in the process at the time the business combination agreement is signed, as compared to an IPO where the pricing occurs near the end of the transaction.
What are Structured Notes?
Structured notes, and structured products generally, are retail products designed or “structured” to meet specific investment objectives, such as growth, income or risk management. They do so by combining a traditional security, like a bond, with a derivative component.
What makes Structured Notes attractive to investors?
Investors seek greater control over their portfolios with defined outcome investing. Structured notes can be a powerful portfolio tool because of their flexibility and customization options that can be tailored to client needs.
How do Structured Notes protect my investment?
Structured notes protect assets by offering built-in downside protection, which can limit potential losses from market downturns while still allowing for some market upside.
What is the process to open an account?
Complete the Data Sheet - You will receive a Data Sheet document via RightSignature to fill out and sign electronically.
Sign the Investment Management Agreement (IMA) - We will also send you Wealthspring Capital’s IMA form through RightSignature for electronic signature.
Review and Sign Schwab Documents - Charles Schwab will email you a secure link with instructions to access your digital envelope, review the documents, and sign them electronically to open your new account.
Fund Your Account - Once your account is open, we will provide wire instructions or a journal form so you can fund your new account.