Barclays
Pulled back from SPACs in 2022
Fees Earned
$350.0M
SPACs Underwritten
30
Bankrupt SPACs
1
Bankruptcy Rate
3.3%
Overview
Barclays had a smaller but notable SPAC underwriting business, earning approximately $350 million in fees. The bank was involved in some high-profile failures including Electric Last Mile Solutions, which went bankrupt within a year of its SPAC merger amid fraud allegations. Barclays also faced its own SPAC-related compliance issues when it discovered it had oversold structured products.
Average Client Return
Average return for investors who held SPAC-merged companies underwritten by Barclays. The bank collected its fees at IPO regardless of subsequent performance.
Notable Deals
The Fee Structure Problem
SPAC underwriters like Barclays typically earned 2% of the IPO proceeds upfront, with an additional 3.5% deferred fee paid at deal completion. On 30 SPAC IPOs, this generated approximately $350.0M in fees.
Crucially, these fees were earned regardless of whether the SPAC found a good target or whether investors made money. The deferred fee was paid from the trust at merger completion — meaning the bank had every incentive to push mergers through, even with subpar targets.