Barclays
SPAC Underwriting Record
2021 SPAC IPOs
12
Est. Fees Earned
$350M
Avg Client Return
-100.0%
Bankrupt SPACs
1
SPACs Underwritten (3 in database)
💰 The Fee Machine
SPAC underwriting fees follow a unique 5.5% structure: 2% paid at IPO, 3.5% deferred until merger completion. For Barclays, that meant an estimated $350M in total fees from SPAC activity.
The deferred fee structure was designed to align bank and investor interests — banks would only get their full fee if a deal closed. But in practice, this created perverse incentives: banks pushed marginal deals to close rather than walk away from deferred fees.
When the SPAC market collapsed, several banks including Barclays walked away from billions in deferred fees — but kept everything they'd earned upfront.