Private equity and alternative investment firms continue to fuel a very active deal market, with seven deals over $1 billion last week and a lot of other activity to boot, especially in the SPAC and IPO world.

You remember SPACs, right? After a two-year leadup in 2019 and 2020, which saw these investment vehicles, also widely known as "blank check companies," account for about $15.5 billion in deal value in 2019 and a massive jump to $84 billion in 2020, they caught fire. SPACs exploded in 2021, driving more than $172 billion worth of deal value. Then came the fall: $16 billion in 2022 and only $4 billion last year.

But the SPAC is not dead.

While certainly muted compared to previous iterations, SPACs have doubled their 2023 deal value. This year's tally currently sits at $8.4 billion, according to Dealogic.

IPOs, while not quite as drastic in their movements, also took a dive after 2021. In 2022 and 2023 had deal values that were less than one-third of that high-water mark.

But things appear to be turning around, according to John Vetterli, co-head of global capital markets at White & Case.

“We’re seeing an uptick in confidence that the equity market is turning a corner after a period of stagnation,” he said via email. “Spurred by a long-awaited interest rate cut, a resilient economy and stock valuations hitting record highs, there is currently a window of opportunity for companies to assess if the timing is right to capitalize on this momentum and plan for an IPO or de-SPAC in the first quarter of 2025 and so far, the pipeline appears strong.”

If this last week was any indication, then things are certainly looking up. There were seven new IPOs and five new SPACs, both highs for the year over any given week.

In addition to the economic factors working in favor of strong equity markets, the incoming U.S. administration, with a distaste for regulation, appears to be adding more fuel to the fire.

“Post-election, many investors are anticipating policy changes that could create growth, as well as changes in leadership at the SEC that may positively affect the IPO and de-SPAC process, but the outcome of that will need to be seen,” Vetterli wrote.

While current SEC chair Gary Gensler's term on the commission does not end until 2026, President-elect Donald Trump has promised to fire him "on day one."

For the balance of week, there were no SPAC mergers (though the above will likely change that in the coming months) and six debt offerings over $500 million, a slight decline from recent averages.

Deals on the Radar

The information regarding the below deals was derived exclusively from Law.com Radar.

BCE's wholly owned subsidiary Bell Canada Enterprises has entered into a definitive agreement to acquire Ziply Fiber for approximately $5 billion Canadian dollars ($3.65 billion) in cash. Ziply Fiber was represented by a Wachtell, Lipton, Rosen & Katz team led by corporate partners Steven Cohen and Steven Green. Bell Canada was advised by a team from Wiley Rein.

Blackstone Real Estate Partners X has agreed to acquire real estate investment trust Retail Opportunity Investments Corp. for approximately $4 billion in cash. The transaction, announced Nov. 6, is expected to close in the first quarter of 2025. New York-based Blackstone was advised by a Simpson Thacher & Bartlett team led by partners Sasan Mehrara, Matthew Rogers and Brian Stadler. Retail Opportunity, which is based in San Diego, was represented by Clifford Chance.

Alternative investment firm Stonepeak has agreed to acquire air cargo transpiration services provider Air Transport Services Group for an enterprise value of approximately $3.1 billion. The transaction, announced Nov. 4, is expected to close in the first half of 2025. New York-based Stonepeak was advised by Hogan Lovells US and a Simpson Thacher & Bartlett team including partners Eli Hunt and Keegan Lopez. Air Transport Services, which is based in Wilmington, Ohio, was represented by Davis Polk & Wardwell and Vorys, Sater, Seymour & Pease. The Davis Polk corporate team included partners William H. Aaronson and Evan Rosen.

Kirkland & Ellis has guided TA Associates in connection with an investment agreement with health care software provider Nexus AG to acquire all outstanding shares in a voluntary public takeover offer for an equity valued of approximately 1.2 billion euros ($1.3 billion). Boston-based TA Associates was advised by Kirkland & Ellis partners Benjamin Leyendecker and Sam Sherwood. Nexus AG, which is based in Germany, was represented by a GSK Stockmann team.

Webster Equity Partners has agreed to sell Retina Consultants of America to Cencora for approximately $4.6 billion in cash. Retina Consultants of America was represented by Goodwin Procter and ReedSmith. Conshohocken, Pennsylvania-based Cencora was advised by Freshfields Bruckhaus Deringer; Sidley Austin; and a Morgan, Lewis & Bockius team including partner Andrew Budreika. The Freshfields Bruckhaus team was led by New York-based partners Damien Zoubek and Joshua Ayal. The Sidley Austin team included partners Colleen Theresa Brown, Torrey Cope, Meenakshi Datta and Jon Zucker. Fried, Frank, Harris, Shriver & Jacobson represented Lazard, which acted as financial adviser to Cencora. The Fried Frank team was led by partners Philip Richter and Roy Tannenbaum.

GHO Capital Partners and Ampersand Capital have agreed to acquire Avid Bioservices for $1.1 billion. GHO and Ampersand Capital were advised by a Ropes & Gray team led by private equity partners Tim Castelli, Neill Jakobe and Andrew Pomranke. Avid Bioservices, which is based in Tustin, California, was represented by Cooley.

Anglo American plc has agreed to sell its minority interest in Jellinbah Group Pty Ltd. to Zashvin Pty Ltd. for approximately $1.1 billion in a deal guided by Latham & Watkins. London-based Anglo American was represented by a Latham & Watkins team led by London-based corporate partners Sam Newhouse, Emily Cridland and Ed Barnett. Counsel information for Zashvin was not immediately available.

Cravath, Swaine & Moore has advised the independent directors of United States Cellular Corp. in connection with the sale of a portion of its retained spectrum license unit to AT&T for $1 billion. The Cravath team was led by partner G.J. Ligelis Jr. Counsel information for AT&T was not immediately available.

SPACs:

K&F Growth Acquisition Corp. II, a blank check company focused on the experiential entertainment industry, registered with the SEC on Oct. 31 for a $250 million IPO. The SPAC, which has applied to list its shares on the Nasdaq, is advised by Ogier and Ellenoff Grossman & Schole partners Douglas Ellenoff and Stuart Neuhauser. The underwriters, led by BTIG LLC, are represented by White & Case partners Daniel Nussen and Joel Rubinstein.

Artius II Acquisition, a blank check company, filed with the SEC on Nov. 6 for a $200 million IPO. The SPAC, which has applied to list its shares on the Nasdaq, is advised by Cleary Gottlieb Steen & Hamilton partners David Gottlieb and Paul Shim. The underwriters, led by Santander US Capital Markets, are represented by Skadden, Arps, Slate, Meagher & Flom partners Gregg Noel and Brian Paulson.

Cantor Equity Partners I, a blank check company, registered with the SEC on Nov. 1 for a $200 million IPO. The New York-based company, which has applied to list its shares on the Nasdaq, is advised by Ellenoff Grossman & Schole partners Douglas Ellenoff and Stuart Neuhauser. The underwriters, led by Cantor Fitzgerald, are represented by Graubard Miller partner David Alan Miller.

Hennessy Capital Investment Corp. VII, a blank check company focusing on the industrial technology and energy transition sectors, registered with the SEC on Nov. 8 for a $150 million IPO. The Zephyr Cove, Nevada-based company, which has applied to list its shares on the Nasdaq, is advised by Sidley Austin partners Michael Heinz and Jeffrey Smith. The underwriters, led by Cohen & Co., are represented by Ellenoff Grossman & Schole partners Douglas Ellenoff and Stuart Neuhauser.

Flagfish Acquisition Corp., a blank check company, registered with the SEC on Nov. 8 for a $60 million IPO. The SPAC, which has applied to list its shares on the Nasdaq, is advised by Becker & Poliakoff partners Robert Brighton and Bill Huo. The underwriters, led by Lucid Capital Markets, are represented by Kramer Levin Naftalis & Frankel partner Christopher Auguste.