Objective of Fund
SiS SPAC Investment Fund (“SiS SPAC Fund”) objective is to achieve a positive risk adjusted return by investing in publicly traded securities, such as units, common stock, warrants and rights in Singapore, Hong Kong, USA and other global Stock Exchanges, issued by SPACS formed for the purpose of raising capital to fund an initial business combination (IBC), through a merger, capital stock exchange, asset acquisition or other transformative transactions, of one or more operating businesses or assets that are typically not publicly listed.
Investment Philosophy
SiS SPAC Fund invests only in SPACs that deposit 100% of money raise in Trust Account while offering warrant per SPAC’s unit. We invest with SPACs’ sponsor with proven value creation track record, with experience in M&A, track record, or senior executives from listed companies. If a SPAC proposed merger is deem overvalued, sell the units or redeem at cost while retaining the attached warrant.
What is a special purpose acquisition company (“SPAC”)?
SPAC is a company that has no commercial operations, instead is formed with the purpose to raise capital through an Initial Public Offering (“IPO”) which is used to acquire or merge with target companies. Also known as “blank check company”, SPACs are typically set up by experienced and reputable investors, individuals or institutions. SPAC Provides private companies with unique access to public markets, while offering investors a co-investment opportunity alongside the best-in-class sponsors. A SPAC is designed to create value by bringing target companies to the financial market quickly, bypassing time-consuming and complicated listing processes of the stock exchange that it will be listed.
SPAC sponsors ideally comprise of successful entrepreneurs, well-known private equity funds and/or firms. All of which have the experience, reputation and expertise in identifying, acquiring and operating businesses and running of public companies. SPAC Investors range from institutions, private equity funds, accredited and retail investors. Typically, SPAC sponsors have a two-year period to identify and complete an acquisition or merger, else are required to return funds to investors.
SPAC have been successful on established bourses such as Nasdaq, New York Stock Exchange, Hong Kong Stock Exchange and Singapore Stock Exchange. The prospect of success for a SPAC is heavily reliant on the expertise of its sponsor to identify suitable and prospective unlisted companies and their ability to unlock value for investors by listing such companies quickly on a bourse.
How Does a SPAC Work ?
Popularity of SPACs in the U.S.
- SPACs have been around for decades in the U.S. But their popularity has soared in recent years, and they’ve exploded in popularity over the past year as an alternative way for private businesses to list on stock exchanges.
- SPAC allows private businesses to bypass the traditional IPO route which can be a time-consuming and complicated process.
- By Nov 4, 2021, around 518 SPACs have gone public, totaling US$142.4 billion in capital raised, exceeding 2020’s record of US$82 billion.
How does the SPAC Fund Meet Accredited Investor’s Needs?
Short Investment Time Frame
Each SPAC investment has a 2-year time frame for the successful IPO of the target company after which monies will be returned to the SPAC Fund.
Alignment of Interest
Investors’ interest aligned through the General Partner commitment
Downside Protection, Upside Opportunities
No obligation to subscribe to shares of target company while still eligible for warrant allocation
Regulated Platform
The Fund is regulated by the Monetary Authority of Singapore and complies with the Singapore’s Securities and Futures Act (2001)
FAQ
The SPAC Fund will invest in SPACs’ sponsor with proven value creation track record, experienced in M&A with up to 100% of money raises in Trust Account while offering warrant per SPAC’s unit. If a SPAC proposed merger is deem over-valued, the SPAC Fund will sell the units or redeem at cost while retaining the attached warrant.
The following accredited investors can invest in the Fund as a Limited Partner
- An individual with
- net personal assets exceeding S$2 million (or its equivalent in a foreign currency) or
- financial assets (net of any related liabilities) exceeding S$1 million in value (or its equivalent in a foreign currency) or
- annual income in the preceding 12 months of not less than S$300,000 (or its equivalent in a foreign currency)
- A corporation with net assets exceeding S$10 million (or its equivalent in a foreign currency)
- Institutional investors such as family offices
The minimum investment sum is S$1,000,000.
Investors will receive updates quarterly updates.
Investing via a fund structure provides investors opportunity to access all SPACs meaningfully and sizably.
The SPAC Fund mitigates risk by spreading its investment in many SPACs.
The fund structure safeguards the interests of every investor through proper fund documentation which clearly stipulates their rights.
There is no guarantee that every SPAC that the SPAC Fund invests in will be able to acquire or merge with a company and list on a bourse within a 2-year time frame.
The post listing price of a successful SPAC listing on a bourse is subject to market conditions.
The SPAC Fund mitigates such risks by:
- Spreading risk through investing in various SPAC companies
- Being selective of SPAC companies to invest
- Having the option not to participate in a SPAC listing but still retaining the detachable warrants.
An independent fund administrator will be appointed to protect the interests of investors and ensure good governance. There will also be an independent audit conducted annually by a reputable audit firm.
The Manager of the Fund is a Registered Fund Management Company (“RFMC”) regulated by the Monetary Authority of Singapore (“MAS”) and is required to uphold robust internal controls, compliance and risk management standards.
The SPAC Fund is targeting for a S$30 million fund size overall.
The General Partner will commit 10% of the aggregate capital commitments of the SPAC Fund.
The SPAC Fund is an Open ended fund
One time subscription fee of SGD$3000 on account opening
0.5% quarterly on net asset value of the company
The minimum commitment period is 3 years from the allotment of shares.
About the SPAC Fund Manager
The Manager of the Fund is SiS Asset Management Pte Ltd (“SiSAM”)
(http://www.sisasset.com/), a fully-owned subsidiary of SiS International Holdings Limited and one of four key pillars of growth of SiS International Holdings Limited.
SiS International Holdings Limited (https://sis.com.hk/) was founded in 1983 and is listed on the Main Board of the Hong Kong Stock Exchange since 1992.Its management team comprises highly experienced professionals with a strong track record in IT, financial, investment and real estate industries.
SiS International has proven product expertise in the technology realm as evidenced by their track record of listings on the Hongkong Stock Exchange, the Thailand Stock Exchange, the Dhaka and the Chittagong stock exchanges.
SiSAM is a Registered Fund Management Company (“RFMC”) regulated by the Monetary Authority of Singapore (“MAS”).
The SPAC Fund Manager will invest in a SPAC sponsor with proven value creation track record, and experience in M&A. The SPAC Fund will only invest in SPACs with proceeds raised in a Trust Account and offer warrant per SPAC’s unit. If a SPAC proposed merger is deem over-valued, the SPAC Fund will sell the units or redeem at cost while retaining the attached warrant.
