Joshua Harris, Apollo Global Management Co-Founder speaks during the 2020 Delivering Alpha conference on Sept. 30th, 2020.
A notable private equity investor said Wednesday that the boom in special purpose acquisition companies was not just a passing fad.
Apollo Global Management co-founder Joshua Harris said at the Delivering Alpha conference presented by CNBC and Institutional Investor that SPACs were filling a needed role for companies that were closing in on going public. Apollo has both raised its own SPACs and exited its position in companies through the blank check vehicles, Harris said.
“The SPAC part of the IPO market is a part of the market that’s here to stay,” Harris told CNBC’s Leslie Picker.
There has been a rush of SPACs in recent months, outpacing traditional IPOs in money raised in July and August, according to Refinitiv. The companies have raised more than $30 billion so far this year.