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Opinion

Sideways: Trump’s motley Spac crew

A lawyer with a specialism in helping Chinese companies to float in the US is among the cast of characters working on Donald Trump’s Spac.

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Barry Grossman, one of the lawyers involved in a special purpose acquisition company (Spac) that seems set to create a windfall profit for its sponsors and Donald Trump, highlights a role helping Chinese companies to list in the US among his business achievements.

That particular line of fee generation is dormant at the moment after China effectively banned new US listings by its companies, a personal goal that Trump failed to achieve while he was in office.

But Spac structuring is the sector that just keeps on giving for insiders, as the deal for Trump’s new media group demonstrates.

Grossman boasts that his firm has been involved in over 200 Spacs, which have raised more than $3 billion, and also touts his experience with the private investment in public equity (Pipe) commitments that have become key to closing many acquisitions by Spacs.

The announcement that Digital World Acquisition Corporation intends to take Trump Media and Technology Group (TMTG) public did not include any reference to Pipe funding.

That didn’t stop the Spac soaring after its deal with Trump was announced, however. Digital World saw its value rise by roughly 900% as Trump followers and day traders (including Trump-following day traders) bought its shares following the October 21 announcement.

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