Most SPAC founders tend to (typically) get 20% of the issued shares for free (an article from Nasdaq.com refers to it as “sponsor promote”).
This in my view means that the the founders have a great interest in getting a deal, so that they can then sell their shares, but they are not necessarily interested in getting a “good deal”, as any deal would allow them to make a massive profit. Even if the share value then drops.
In the last few months I saw that Pershing Square Tontine Holdings launched with a different proposal, where as I understand it, the founder buys 20% of the shares at the issued value up front (they pay for them - no free shares!), though they do get the option of buying X amount of future shares at the issue price as long as the share price appreciates by more than 20% in a couple of years time, a bit like directors in a company.
This is more appealing though, as investors know that the “founders” of the SPAC will not be getting any free money from it and they have to get the SPAC to be relatively successful before profiting from it.
In short, does anyone know of any more SPACs (apart from PSTH) in which the founders don’t get any free shares?
If not, is there anywhere I can find more information on this?