Sumary of How Clever Deals Made Houston Rockets Owner Tilman Fertitta Billions Richer During The Pandemic:
- Instead, he’s getting richer by making use of the era’s hottest financial trend: the special purpose acquisition company, or SPAC.
- ) SPACs, of course, are publicly traded shell companies that raise money to facilitate a future merger with an unnamed private company that might not have the heft or the patience to do a traditional initial public offering, with all the federal scrutiny that entails.
- SPACs have boomed the last two years thanks in no small part to all the cheap money the Federal Reserve has pumped into the economy.
- United Wholesale Mortgage CEO Mat Ishbia is now worth around $8 billion (down from almost $13 billion since January) after his family-owned company went public through a merger with a SPAC sponsored by billionaire investor Alec Gores, who has done eight such deals.
- He received $160 million in forgivable federal paycheck protection program loans—but gave it all back to Uncle Sam after public outrage over big operators getting cash intended to help small businesses.
- ” Instead, that April, he drew an emergency $300 million loan at a rate of nearly 13% against his Golden Nugget Online Gaming division (GNOG), which had become a pandemic bright spot, with people stuck at home gambling their federal stimulus money.