Deutsche Bank
Pulled back from SPACs in 2022
Fees Earned
$800.0M
SPACs Underwritten
60
Bankrupt SPACs
3
Bankruptcy Rate
5.0%
Overview
Deutsche Bank, already plagued by compliance scandals, eagerly jumped into the SPAC underwriting business during the boom. The German bank earned an estimated $800 million in fees from SPAC work, underwriting dozens of deals that ultimately destroyed investor capital. Deutsche's involvement highlighted how banks with questionable risk cultures were attracted to the easy money of SPAC fees.
Average Client Return
Average return for investors who held SPAC-merged companies underwritten by Deutsche Bank. The bank collected its fees at IPO regardless of subsequent performance.
Notable Deals
The Fee Structure Problem
SPAC underwriters like Deutsche Bank typically earned 2% of the IPO proceeds upfront, with an additional 3.5% deferred fee paid at deal completion. On 60 SPAC IPOs, this generated approximately $800.0M 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.