The blank check company formed by developer Russell Galbut and investor Michael S. Liebowitz raised $115 million, $15 million more than its $100 million goal.
New Beginnings Acquisition Corp. closed its oversubscribed initial public offering in early November, after forming the special-purpose acquisition company last month, Liebowitz said. The firm plans to invest in travel, hospitality, fintech, insurance tech, proptech and other industries impacted by the pandemic.
New Beginnings sold 11.5 million shares priced at $10 each. With the oversubscription, the SPAC can invest in deals ranging from $500 million to $800 million, Liebowitz said.
He declined to name investors.
Blank check firms, or SPACs, have no underlying assets and are formed with the goal of merging with a target company and taking the company public.
Galbut, co-founder and managing principal of Miami-based Crescent Heights, is chairman of New Beginnings. Liebowitz, managing director and executive vice president of Alliant Insurance Services, is director and CEO, according to a release. The two have worked together in the past: In late 2019, Crescent Heights sold 50 percent of its Mondrian South Beach condo-hotel to Liebowitz.
Liebowitz said the goal was to get the SPAC launched and closed prior to the election due to the uncertainty that was expected to surround the election. New Beginnings is looking for investments every day, he said.
Blank check firms have started to make a comeback in the real estate industry. The companies cannot be used to acquire individual properties, but SPACs can acquire companies with real estate assets.