The market for special purpose acquisition companies shrank in 2022.

There were 86 SPAC IPOs in 2022, compared to 610 in 2021, according to S&P Global Market Intelligence data. The reversal of the SPAC market coincided with increased regulatory scrutiny and rising interest rates.

"I would expect the slowdown to continue," said Bob Tull, president of investment advisor ProcureAM, in an interview. "I really don't see any change until 2024."

IPOs

IPOs by SPACs in 2022 raised a combined $13.42 billion, compared with $160.75 billion in 2021, according to Market Intelligence data.

M&A

There were 187 SPAC M&A deals in 2022, compared with 265 in 2021, according to Market Intelligence data.

The aggregate value of those deals was $8.85 billion, compared with $39.16 billion in 2021.

Expiring soon

SPACs typically have two years from the time of their IPO to buy a company. If a blank-check company has not found a deal in that time, the money raised goes back to its investors. It is possible that many SPACs end up returning money back to investors, which would fuel negative press about SPACs, Tull said.

A recent count of 15 SPACs nearing their expirations included those targeting deals in the healthcare and financial technology industries. The value of those offerings ranged from $172.5 million to $1.04 billion.