SPACs and the UN Sustainable Development Goals part two

PART II: SPACs and the UN Global Goals:
Inclusive Impact Investing for the Global Agenda!
Another dive into the wonderful world of SPACs Special
Purpose Aquisition Corporations and their potential to
accelerate impact. Specifically the United Nations Sustainable
Development Goals. Riding the 2020 Tech Surf ll’look at
SPACs & Impact Themes such as Sustainability, (Fin)Tech,
Healthcare & Wellbeing, Societal Infrastructure,
Renewables (Energy), (Plant based) Food & Beverages.
Please Note that (E)Sports are mostly a couchbased activity.
SPACs are blank check companies raising capital based on
theme(s), track records or reputation of the fundraisers.
SPACs themselves are inclusive investment opportunities
For both investors: sold at on average 10$ and investees:
fast (Direct Listing via merger/acquisition instead of IPO) & cheap access to (growth, transformation, exit) capital.
A Sustainable Development SPAC
A strong case that the SPACs movement accelerates the Sustainable Development Goals is the #SDAC SPAC:
Sustainable Development Acquisition Corporation by RenewableResources Group. It is a Capricon
Investment Group company: an impact investing pioneer & ambassador founded by E-Bay billionaire Jeff Skoll.
The annual Skoll World Forum at Oxford Said Business School is one of the global impact events.
SDACs website url says it all: waterfoodenergyspac.com As does the fact that it is a Benefit corporation, pending
B corp. The first SPAC according to Forbes. Benefit corporations are for profit companies that want to have
Drs Alcanne J Houtzaager MA, Inclusive2
Impact Investing, Tools & Thought Pieces
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positive impact on society and/or the environment #stakeholders. It seeks 316MUS$ for water, food, agriculture
& renewable energy targets. Details on the website show sub themes such as water conservation & disaster relief.
Capricorn, the holding company was founded in 2000 to ‘pursue extraordinary investment results by leveraging
market forces to scale solutions to global problems’. It works in Southern Sub Sahara Africa and published it’s
2020 Annual Report already, in which it describes its activities in detail. Fascinating reading.
#Sustainability #Water #Food #Agriculture #Renewable Energy #Environmental Resources
Links: https://www.waterfoodenergyspac.com/ & https://finance.yahoo.com/quote/SDAC/
https://www.waterfoodenergyspac.com/wp-content/uploads/2021/02/The-First-Public-Benefit-Corporation-SPAC.pdf
https://www.capricorn.com.na/Financial%20and%20sustainability%20reports/2020%20Capricorn%20Group%20Integrated%20Annual%20Report.pdf
Global Goal 7: Affordable Clean Energy
Renewables seems a modest SPAC theme after the surge in Tech Energy SPACs in 2020 with
27Billion US$ raised. An interesting exclusion SPAC is #ARES raising US$1Billion without a theme,
but ruling out oil ….
I’ll highlight #SPQR Sunlight Financial for residential customers looking to install solar panels.
#inclusive. It aims to raise US$345M. And we are talking #scale: ‘It has issued more than $3.5
billion in loans in the residential solar market & the company also works with more than 800 solar & home
improvement contractors’. And to broaden your SPAC vocabulary: ‘Prior to the closing of the deal, a collection of
investors have committed to a $250 million private investment in public equity (PIPE)’. #DoneDeal
#Renewable Energy #Solar #Access #Scale
Links:https://finance.yahoo.com/quote/SPRQ/
https://www.nasdaq.com/articles/sunlight-financial-spac-merger%3A-12-things-to-know-about-the-solar-play-as-sprq-stock-soars
https://techcrunch.com/2021/01/25/chamath-palihapitiyas-spac-for-sunlight-financial-is-another-sign-of-a-renewables-boom/
https://medium.com/contrarian-view/spac-mergers-as-a-catalyst-for-energy-tech-exits-5042d36601bc
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Global Goal 8: Economic Growth & Decent Employment
Well known sponsor is a typical SPAC characteristic. I choose AEABridgesImpact IMPX for that
reason. Bridges Fund Management is the UK pioneer & accelerator for social & impact investing
founded by Sir Ronald Cohen. It crossed the Atlantic to partner with Brian Trelstad. Trelstad’s
Harvard Business Review article on the Many sides of Impact (5P’s: Product Place Process Planet &
Paradigm) inspired me to mirror it for inclusive impact investment with PRICP: Price: Affordable!;
Risk Related Return; Incentivised Impact; Catalyst (or Additional capital) & Public (inclusive).
Another name that made #IMPX attractive is the involvement of Prof George Serafeim Harvard Business School
and lead researcher of Relevant, Material Sustainability for GISR embodied in SASBs Sustainability Standards.
Now the leading ESG Enviroment, Social Governance screen & embraced by Fitch S&PGlobal, MSCI ESG etc.
#IMPX, AEABridgesImpact SPAC is: ‘driven by a clear conviction: that the businesses that will thrive in the
next decade are those that are helping to build a more sustainable and inclusive economy. We aim to apply
multi-decade investment and value-creation experience alongside best-in-class impact management and
Environmental, Social & Governance skills to achieve attractive risk-adjusted financial returns for investors.
We will invest through the lens of the UN Sustainable Development Goals (“SDGs”), which reflect social and
environmental mega-trends that are re-shaping our world. The most successful companies in the years to come will
find scalable solutions to these challenges that contribute to positive outcomes and unlock lasting economic
value. By investing in a more inclusive and sustainable future, we believe a company can consistently create both
long-term economic value and measurable societal impact. #exemplary
#Sustainability #ESG #Inclusive #SDGs #Scalable Solutions
Link https://www.aeabridgesimpactcorp.com/about/mission & https://finance.yahoo.com/quote/IMPX?p=IMPX&.tsrc=fin-srch
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Global Goal 9 Industry, Infrastructure & Innovation
Spactrack shows only one active SPAC with Innovation as theme: #AACE Alexandria Acquisition
seeking 250MUS$ for AgTech & Climate Innovation. With the fundraiser coming from real estate
management with health care tenants diversifying to Life Science as Alexandria Venture (Capital)
investing. The SPAC CEO Joel Marcus has a trackrecord as ‘architect & co-founder of Accelerator
Life Science Partners, for which he serves on the board of directors, and AgTech Accelerator
Corporation, for which he serves as Chairman of the board. His diverse philanthropic work includes
the NY Robin Hood Foundation (Poverty Elevation, not Alleviation). Marcus favors innovation clusters at AAA
location campuses. He stresses the importance of proximity of food production to eradicate transport losses in a
Forbes podcast 34m & article. #Effectivity #NetImpact
#AgTech #Climate #Innovation
http://www.acceleratorlsp.com/our-team/joel-s-marcus/https://www.forbes.com/sites/forbesinsights/2020/03/17/why-investment-and-ip-clu
stering-is-key-to-an-innovative-future-across-the-globe-with-joel-marcus/?sh=619a9c9f5e1c No Yahoo Finance page (yet).
Global Goal 10 Reduce Inequality
If only, if only there was stock we could invest in to reduce inequality…. I chose Robotics as Tech to
fight Inequality to alleviate hard monotonous physical labor, assist dissabled* and create the new jobs
that we need to counterforce effects of automation & the 4th Industrial Revolution.
Identifying Techs for the Global Goals are an impact investing strategy to invest in ImpactTech
Growth stock next to Basic Needs Value stock.
Robotics are also embraced by the World Food Program (WFP) working with WeRobotics using
drone’s as information collectors in response to humanitarian disasters. WeRobotics supports dozens of local non
profit Flying Labs in over 30 countries. Check out an update on WeRobotics Flying Labs work in South Africa:
https://blog.werobotics.org/2021/03/30/south-africa-flying-labs-champions-drones-emerging-technology-for-social-good/
& https://blog.werobotics.org/2017/04/03/wfp-werobotics/
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Spactracs Active List has #AGGR Agile Growth with Robotics/Automation theme next to software, Fintech &
#Edtech. It seeks 300MUS$. No mention of impact or sustainability, it has a code of corporate governance & an
ethics code. https://www.agilegrowthcorp.com/home/default.aspx
Techcrunch profiles Berkshire Grey, AI enabled warehouse automation for the retail supply chain surfing the online
shopping wave. It is bought by (Revolution) Acceleration Acquisition Group SPAC #RAAC. Seeking 400MUS$.
RAACs philosophy: ‘...rapid technological innovation, a shift to sustainability and clean energy, and the
global pandemic will accelerate the adoption of the digital economy, alter individual and business behavior, create
new ways of providing healthcare, energy and government services, and incentivize the building of domestic
supply chains. These changes will disrupt sectors and markets, reframe investment priorities and usher in an era of
increased collaboration. ... transformative – and ultimately positive – trends
#Transformative
https://revolutionaac.com/ & https://finance.yahoo.com/quote/RAAC/
https://techcrunch.com/2021/02/24/robotics-company-berkshire-grey-to-go-public-via-spac/.
#ROT Rotor Acquisition Corporation is a SPAC seeking out Robotics companies. Our investment focus is on
companies operating in large and growing markets that are ripe for disruption and that are bringing technology &
innovation to ‘old-economy’ businesses. 495MUS$ of which 220mUS$ PIPE. https://www.rotoracquisition.com/
Rotor is Merging 4 Direct listing with Sarcos Robotic systems #exoskeletons for non-repetitive tasks. #ROT
to ‘enhance productivity, reduce occupational injuries, and equalize employment opportunities for the jobs
around the world that do not lend themselves to automation’. Bloomberg: ‘Sarcos wearable devices help people
move heavy objects with mechanical limbs and support, reducing workplace injuries and allowing employees less
capable of strenuous labor to carry out tasks such as lifting airport baggage and manufacturing components without
assistance.’ There is a snag for investors that exclude the military #DoNoHarm, the systems are also designed for
military workers.
#Robotics #Reduce Occupational Injuries #Equalize Employment Opportunities
https://www.bloomberg.com/news/articles/2021-04-06/sarcos-robotics-is-said-to-plan-spac-deal-for-1-3-billion-value
https://www.businesswire.com/news/home/20210406005563/en/Sarcos-Robotics-to-Merge-with-Rotor-Acquisition-Corp.
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Global Goal 11 Sustainable Communities
Real Estate is a popular SPAC theme (21), as is the tech to catalyse new business models. In 2020
24BUS$ poured in via new technology products & innovative business models according to
Tedcrunch. I stress Affordable Social Housing as contribution to Global Urbanization & Sustainable
Cities & Communities needs. And of course the construction sector has a huge impact agenda to
tackle. #DoLessHarm https://17globalgoals.com/sustainable-development-goals-and-the-construction-industry/
Of the real estate SPACs listed as active on SPACtrack many state Real Estate Service. And Perkins (affordable
housing expert) & Shermansong (Techie) state on TedCrunch that I should focus on ‘Prop(erty)Tech’ as the
Impact Tech ‘to change lives’. ‘Many ... emergent technologies could be adapted to become housing tech’
solutions - focused on financial resilience, fresh food access, healthcare access and workforce development - which
have the potential to transform the lives of our most at-risk populations’. … and this way these ‘technologies
help improve the day-to-day struggles of the vast majority of low-income families’.
https://techcrunch.com/2021/01/27/vc-investment-in-proptech-can-yield-profits-and-change-lives/
Is there a catch? Early in 2019 Leonard Vinci (#coolname!) wrote a thoughtpiece on ‘Proptech moving tinto the
Affordable Housing scene’ stressing the importance of simple modular & prefab construction of homes next to tech.
One of the mentioned players in Affordable Property, Metaprop VC, publishes an interesting Prop Tech Investor
Confidence index (biannually). Also mentioned is modular builder Katerra (which ran into financial difficulties
earlier this year, was bought by Softbank) It sees ‘Sustainability’’ as ‘Environmental intelligence, delivered at scale’.
In 2021 it seems all has merged into one PropTech field https://leonard.vinci.com/en/is-affordable-housing-proptechs-new-playground/
https://www.metaprop.vc/research & https://katerra.com/sustainability/
Alas I dont see a PropTech SPAC that stands out nor do I feel that the listed closed SPACs Opendoor (Hedosophia
SocialFinance II), Landsea LSAE family homes or multi family homes (appartment buildings?) by EG Acquisition or
CRE are about affordable housing. Maybe better eye REITS Real estate Investment Trusts, and this REIT Alert
comeback: Aspire Real Estate REIT for Workforce Housing (it withdrew an Affordable Housing REIT IPO in late
2020) It;s focus Opportunity Zones, with income-restriction units. 100MUS$ REIT with big plans for the future 500M
& 1.1BUS$.
https://www.fool.com/millionacres/real-estate-investing/articles/new-reit-alert-aspire-real-estate-investors-targets-workforce-housing/
https://www.nreionline.com/multifamily/first-affordable-housing-reit-puts-spotlight-growing-sector
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GlobalGoal 12: Responsible Consumption & Production
#Sustainbility as search term on Spactrack delivers 71! Active SPACs (11 closed in 2020). A lot
for Energy Transition some solo on Sustainability. Eg the #STWO SPAC seeks 250MUS$ for ACON
private equity ‘We believe part of doing well is doing good’.
#NGAB II Northern Genesis website ‘We believe that there is a growing societal sensitivity on the
part of customers, investors and employees to the alignment that a business demonstrates with the
principles underlying sustainability... While a commitment to ESG covers a broad range of themes, we are
specifically focused on evaluating suitable targets whose business practices demonstrate clear alignment with
sustainability principles and whose organizational culture embraces the value of such alignment.’
http://www.northerngenesis.com/
#ESG #Sustainability #Best Practices #Organizational Culture
Or #BWAC Better World Acquisition Corporation. It targets include “healthier, cleaner, more sustainable
products & ingredients,” and technologies making cities “safer, more convenient, and more
comfortable,” (SEC filing). It has a well known sponsor with Rosemary Ripley board member at Dutch
multinantional Heineken (beer, a pioneer at water saving techniques) and managing director at N*GEN & which
invests in sustainable agriculture, renewable energy and “circular product” companies, including healthy
school lunch provider Revolution Foods and energy management software company Encycle.
According to impact investing newsletter & podcaster @ImpactAlpha Better World it is looking to raise $110
million to acquire and take public a company focusing on healthy consumers and smart cities.
#Circular #Sustainable Agriculture
https://impactalpha.com/healthy-living-spac-better-world-acquisition-corp-launches-on-nasdaq/
https://finance.yahoo.com/quote/BWAC?p=BWAC&.tsrc=fin-srch
Next time I’’ll dive into Global Goal Climate Action (Carbon) SPACs and beyond. First some finance experts
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I will share some thoughts from Snijders & Hadders @ACTIAM AM. The first Dutch Asset Manager to start an
Impact Investment division focused at financial inclusion in developing markets. Only open to HNWI’s, but hey we’re
talking over 10 years back.
TWO SIDES OF THE STORY: SPACs
Hadders: On SPACs as inclusive ‘SPACs will probably occur more often in the portfolio of private investors than in
those of institutional parties.”
And nice for the Dutch he quotes ‘The Financial Times headline: “European bankers set sights on Amsterdam as
regional SPAC capital”. Apparently, this is due to the flexible regulations and Amsterdam’s current role in the
trade of shares and derivatives following Brexit.
He asks Snijders on SPACs from a sustainability point of view. Is there anything that stands out in terms of
reporting and obligations and how is the generous remuneration of the founders of such a SPAC being viewed?
According to Hadders: “SPACs are not a panacea or the only funding method for stimulating sustainability.
Given the huge challenge of transitioning to a more sustainable world, it is actually important to grab any
opportunity to scale up green technologies.
SPACs are an innovative way to achieve these goals, provided companies offer sufficient transparency and take
account of several aspects of sustainability in their internal business operations.
It is therefore important for investors to ask themselves not only how SPACs can capitalise on green opportunities,
but also whether they are accurately mapping the risks. This goes for both the internal business operations of
a SPAC, e.g. the remuneration policy, but also for envisaged acquisitions.
Full exchange of ideas: https://www.actiam.com/492dc5/siteassets/4_verantwoord/documenten/en/two-sides-of-the-story---spacs.pdf
This list of potential inclusive impact investing SPACs is not investment advice. I am a Contemporary Political Historian (Drs @ University of Groningen,
Propedeuse @ UniUtrecht) with a Masters of Arts degree in Alternative Development Strategies at the Institute of Social Studies part of Erasmus University
Rotterdam. As far as impact investing concerns, I am an autodidact with some good advice from Dad and an introductory course to investing offered by
ABNAMRO Bank in The Netherlands. I started studying & practicing impact investing about 10 years ago. I certainly did not buy all of the proﬁled SPACs,
sometimes as little as 5 stocks, sometimes a bit more: guru’s or ﬁlled with a number of edtech stocks and paying out excellent dividends. No Warrants or Units.
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SPACs and the UN Sustainable Development Goals part two