THE WHAT? LVMH head Bernard Arnault is teaming up with former UniCredit CEO Jean Pierre Mustier to launch a special purpose acquisition company (SPAC) in order to invest in European financial companies.
THE DETAILS Four partners will be equal investors in the venture, with French investment firm Tikehau Capital SCA and Financière Agache, a group owned by Arnault, joining former banker Diego De Giorgi, who will co-run Pegasus Europe.
The company will be listed in Amsterdam, reported to be the emerging choice in Europe, and is said to be one of several planned by the group.
THE WHY? The new company comes at a time of a $100bn SPAC boom, which has spread from the U.S.
Talking to the FT, Mustier said, “Europe needs more growth capital to support companies and the Spac can be the missing instrument between a traditional IPO and private equity financing.”
He continued, “This is not just about a quick deal. We can offer long-term investment and partnership with our expertise.”