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AQR Principal: Nordic debut SPAC's lack of downside protection wouldn't pass muster overseas

AQR's corporate event specialist, Todd Pulvino, says Sweden's debut SPAC, despite luring in many of the biggest domestic investors, wouldn't be attractive in the US. Pulvino highlights downside protection offered in US shell listings.

Todd Pulvino, Principle at US investment manager AQR Capital Management where he manages arbitrage strategies. | Photo: PR / AQR Capital Management

When Swedish investment company Bure Equity listed Scandinavia's first special purpose acquisition company (SPAC) on March 25, domestic investors such as pension insurance company AMF, national pension fund Fjärde AP-fonden (AP4) and SEB Fonder participated as anchor investors.

While local investors were quick to commit capital to the new vehicle, Todd Pulvino, co-founder of CNH Partners, an affiliate of AQR Capital Management focusing on arbitrage strategies, is certain that the Swedish SPAC wouldn't have experienced the same interest had it been listed the other side of the Atlantic.

The reason for this is that the Swedish SPAC's structure is quite different to those available in the US, he explains.

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