Dutch Star Companies, a successful combination of expertise
Dutch Star Companies is a successful initiator of special purpose acquisition companies (SPAC), powered by Oaklins. The name Dutch Star Companies refers to the objective to raise capital and to acquire a significant minority stake in a single Dutch high performing 'star company' with principal business operations in Europe, preferably in the Netherlands. Dutch Star Companies is originated in 2017 by Niek Hoek, Stephan Nanninga, and Gerbrand ter Brugge on behalf of Oaklins.
What is a SPAC?
Dutch Star Companies is a successful initiator of Special Purpose Acquisition Companies usually referred to as SPAC.
A SPAC is a listed investment vehicle set up exclusively to raise capital with the intention to acquire a (significant) minority interest in one non-listed (target) company; the Business Combination.
SPAC’s are very popular in the US market. But an American SPAC is not a Dutch SPAC. Every SPAC has its own characteristics and the DSC2 SPAC is hence not comparable to other SPACS.
The unique characteristic of a SPAC like DSC2 is that capital is raised to invest in a company that is not listed yet and hence equity investors would otherwise not have easy access to.
At Business Combination the SPAC provides a 100% equity investment to the target company, which may be used to finance growth, for debt redemption, or to buy out a shareholder. This provides DSC2 shareholders the opportunity to invest in, for instance, a successful midsized family business, a carve-out, or a private equity exit. The warrant construction included in the DSC2 shares gives superior shareholder return when the stock performs well after the business combination has been completed.
For the company entering into a business combination, the DSC2 SPAC provides an efficient route to a full-fledge listing (an ‘IPO in a box’). A listing via a SPAC will be executed against pre-agreed terms and valuation with no risk of a failed IPO and with relatively low costs. In addition, the DSC2 Executive Directors provide the target company with additional experience in an advisory capacity post-Business Combination.