NEW YORK--(BUSINESS WIRE)--Wealthspring Capital (“Wealthspring”) continues to strengthen its foothold in the special purpose acquisition companies (“SPACs”) space with the launch of its second SPAC product and debut hedge fund offering, Fountain Opportunities, LP. Fountain Opportunities is designed for sophisticated investors who are interested in accessing the entire SPAC lifecycle and capitalizing on the product’s inherent upside potential. The fund is currently taking subscriptions and will officially begin trading on May 3, 2021.
The offering comes as SPAC issuance continues to shatter records, with total funds raised via SPACs in the first quarter of 2021 exceeding total issuance throughout all of 2020 and investor interest remaining high. Fountain Opportunities seeks to provide investors with a more opportunistic approach to the SPAC market by selectively participating in all aspects of the SPAC ecosystem from SPAC to DeSPAC. Most notably, the fund offers investors hard-to-access Founders Shares, the ability to invest alongside the originating SPAC sponsors with a shared interest in generating positive outcomes. Further, the fund uses leverage to buy and trade around positions and offers strategic participation in private investment in public equities (PIPEs). Fountain Opportunities will pursue a more aggressive return profile while taking advantage of the SPAC characteristics that help manage risk.
The management team is led by Wealthspring co-founders Matthew Simpson and David Gallers. Under Simpson and Gallers’ leadership, Wealthspring has emerged as an innovator in the SPAC space due to success achieved for investors and its research and due diligence process. Wealthspring employs a comprehensive vetting process for its investments, relying heavily on a proprietary research database and direct access to sponsor teams to inform decisions.
“We have seen unprecedented investor interest in SPACs, which has prompted significant volatility in the already speculative space,” said Gallers. “Yet we see a tremendous opportunity for investors who employ a strategic and thoughtful approach, and Fountain Opportunities is uniquely positioned to take advantage of the cyclical nature of the SPAC market.”
This is Wealthspring’s second SPAC-focused investment product offering. Its US Treasuries + Alpha® with SPACs product is a separately managed account (“SMA”) cash management strategy that offers investors access to SPACs while providing the recognized safety and security of US Treasuries. The strategy has driven noteworthy success for Wealthspring, which has amassed over $650 million in assets under management in the two years since its launch. Last year, the SMA strategy returned over 20% to investors, backed by a GIPS compliant and verified track record.
“To be best positioned for success in SPAC investing, you need to align with a management team who knows the space, knows the sponsors, the risks and the prospects,” explained Simpson. “We are differentiated in the SPAC space because we have a dedicated focus and a proven track record of successful SPAC investing. Fountain Opportunities will allow more investors to access what we view as an incredibly attractive space.”
With the latest offering, Wealthspring is on track to surpass $1 billion in assets under management by year-end. For more information on the Fountain Opportunities, LP, please visit www.wealthspringcapital.com.
About Wealthspring Capital
Wealthspring Capital is an investment advisory firm that offers unique investment strategies to advisors, sophisticated high net-worth investors and family offices. Co-founded by investment industry veterans Matthew Simpson and David Gallers, Wealthspring seeks anomalies in the system and creates investment opportunities for its clients and advisor partners. The firm offers two special purpose acquisition companies (SPACs) based strategies: the Fountain Opportunities, LP hedge fund and the US Treasuries + Alpha® with SPACs separately managed account strategy. Based in New York, the firm manages over $650 million in client assets (as of 3/15/2021). For more information, please visit www.wealthspringcapital.com.