Credit Suisse
Pulled back from SPACs in 2022
Fees Earned
$1.2B
SPACs Underwritten
85
Bankrupt SPACs
3
Bankruptcy Rate
3.5%
Overview
Credit Suisse was a major SPAC underwriter before the bank's own spectacular collapse in 2023. The Swiss bank earned over $1.2 billion from SPAC-related fees, underwriting dozens of blank-check companies that would later implode. In a cruel irony, the bank that helped create billions in investor losses itself became a casualty of financial excess, being absorbed by UBS in a forced merger.
Average Client Return
Average return for investors who held SPAC-merged companies underwritten by Credit Suisse. The bank collected its fees at IPO regardless of subsequent performance.
Notable Deals
The Fee Structure Problem
SPAC underwriters like Credit Suisse typically earned 2% of the IPO proceeds upfront, with an additional 3.5% deferred fee paid at deal completion. On 85 SPAC IPOs, this generated approximately $1.2B 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.