Skip to main content
// //

Starboard Value LP said on Tuesday it plans to raise US$300-million through a blank-cheque acquisition vehicle, becoming the latest major hedge fund to jump on this year’s frenzy for such deals.

Starboard, launched in 2011 by chief executive Jeffrey Smith, joins the ranks of William Ackman’s Pershing Square Capital Management LP and Daniel Loeb’s Third Point LLC that have also raised these pools of capital, known as special purpose acquisition vehicles (SPACs).

SPACs have raised US$22.5-billion this year to spend on deals, exceeding the record US$13.6-billion raised in 2019, as more private companies choose them as an alternative to initial public offerings.

Story continues below advertisement

There are 104 SPACs, which have raised together US$32.4-billion, currently chasing deals, according to SPAC Research.

Starboard, which has US$5.8-billion in assets under management, said in a regulatory filing the new vehicle will be called the Starboard Value Acquisition Corp. (SVAC). It will use the money it raises in an IPO to acquire a company that it has not identified in advance.

Mr. Smith will be SVAC’s chairman and M.J. McNulty, a Starboard executive, will lead the new vehicle as CEO, the filing said.

SVAC counts Nigel Travis, a former CEO of Dunkin’ Brands Group Inc.; Greg Waters, a former CEO of Integrated Device Technology; Erin Russell, a former principal at middle-market private equity firm Vestar Capital Partners; and Anthony Sanfilippo, a co-founder of investment firm Sorelle Capital, as its industry advisers.

Starboard, which has secured more board seats at companies than any other hedge fund this year, is known for its operational expertise and for ushering in changes at companies ranging from Darden Restaurants Inc. to Papa John’s International Inc.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Follow related topics

Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies