Goldman Sachs
Pulled back from SPACs in 2022
Fees Earned
$1.5B
SPACs Underwritten
95
Bankrupt SPACs
4
Bankruptcy Rate
4.2%
Overview
Goldman Sachs was one of the most prestigious banks involved in the SPAC boom, lending its name and credibility to dozens of blank-check IPOs. The bank earned an estimated $1.5 billion in fees from SPAC-related work before abruptly pulling back in 2022 when the SEC increased scrutiny. Goldman stopped working on most new SPAC IPOs and even tried to resign from pending deals, but the damage was done — their involvement helped legitimize a structure that devastated retail investors.
Average Client Return
Average return for investors who held SPAC-merged companies underwritten by Goldman Sachs. The bank collected its fees at IPO regardless of subsequent performance.
Notable Deals
The Fee Structure Problem
SPAC underwriters like Goldman Sachs typically earned 2% of the IPO proceeds upfront, with an additional 3.5% deferred fee paid at deal completion. On 95 SPAC IPOs, this generated approximately $1.5B 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.