Introduction to the IG Acquisition (NASDAQ: IGAC) Corporation
A pretty fresh and exciting SPAC that is looking to capitalize on the recent multi-sector dip due to the global pandemic. The IGAC SPAC has the investing world talking.
The SPAC hit the open markets on October 1st 2020 with 30 million units at a standard $10 per piece. Each unit contained a common stock half of a redeemable warrant.
Choosing to enter the gaming and leisure sector with this $300 million IPO, many investors are pretty eager to capitalize on the selected sectors this company is targeting. Not to mention the involvement of Bradley Tusk.
But can the man with the Midas Touch apply his magic to these hugely resurfacing sectors?
Let’s take a deeper look!
Sponsor Analysis & Background
According to the Prospectus, the listed sponsor is “IG Sponsor LLC.” However, the involvement of Bradley Tusk and his VC firm, Tusk Ventures, should be considered the real power players involved with the IGAC SPAC.
Sitting as Chairman of the IGAC SPAC, Mr Tusk is an American businessman, venture capitalist, philanthropist, political strategist, and writer. His reach far extends outside that of the business world.
He has gone on record recently mentioning forecasts regarding IPOs and the entrances of businesses into the public sector. The IGAC SPAC seems like the natural progression of these predictions.
As of 2015, he serves as CEO and Co-Founder of Tusk Ventures. This shall serve as a further platform for sponsorship in regards to the IGAC SPAC. However, prior to this VC fund, Bradley Tusk was the CEO and Found of Tusk strategies. This political consulting firm has operated since 2010.
Before that, he was Chairman and Co-Founder of the iconic Ivory Gaming Group. This marks the beginning of Mr Tusks deep and thorough understanding of both the gaming world and political regulation.
A shortlist of other mentionable experiences that may not be so relevant would be his role as campaign manager to Mayor Michael Bloomberg’s successful 2009 re-election bid and as an early political advisor to Uber (NYSE: UBER).
The aim of Tusk Ventures is particularly unique.
We invest in early-stage technology startups operating in heavily regulated markets or creating new business models where no regulatory framework exists.Tusk VC Official Statement
This VC prides itself on the ability to invest in extremely ambitious startups with an ability to “understand regulatory risks better than other venture funds.”
Since opening its doors in 2015, the company has invested successfully in a variety of regulatory challenging ventures. However, these are not all gaming or leisure related.
Currently, the company’s portfolio deals with a range of clients from transportation, healthcare, insurance, digital payments and even a crypto repository!
Upper Management of the IGAC SPAC
The current CEO and Director, previously having served as Co-Founder and CEO of Ivory Gaming Group, Mr Tusks Casino Management Company since 2015.
Prior to that, Mr Goode was President of Genting Americas (a division of the Genting Group International Conglomerate). The Genting Conglomerate (3182.KL) operates Casinos around the World ranging from America, Australia, Malaysia, the Philippines, Singapore and the United Kingdom.
In fact, Mr Goode has nothing but extensive experience within the leisure, gaming and hospitality industries and many contacts and connections to supplement his time.
The CFO of the IGAC SPAC brings with him over 30 years within the Casino Industry in particular. From 2016 and 2020, Mr Farrell was both the CFO and President of Genting Americas. Actually the successor to Mr Christian Goode!
Mr Farrell has casino relevant experience all across the country from the MGM Reno, the Mirage Las Vegas and even the Resorts World Casino in New York.
This extensive experience in both leadership and CFO positions across these large and varied gaming businesses leaves very few men more qualified for this position.
Key Members of the IGAC SPAC
A very interesting addition to this list. Ms Dockery is a founding partner of Vice Ventures. This VC focuses on seed-stage companies with an emphasis on “Vices.” That being the cannabis, alcohol, e-sports, and addiction recovery industries.
It is without doubt that her expansion into the field of the “illicit” would have granted her an in dept knowledge and understanding of various governmental rulings and regulations.
Especially her E-sports venture, Players Lounge. which focuses on the gambling and generation of money through playing video games.
Abigail L. May
An unbelievable level of experience in regards to private equity funds as well as within the financial services industry. Also serving as a Senior Advisor to an early-stage New-York based Venture Fund, called Flatiron Venture Partners.
Prior to that, the Managing Director of Atlas Merchant Capital (an investment firm with a particular focus on the financial services industry). As well as Managing Director of BAWAG P.S.K, an Austrian commercial bank.
Kenneth G. Kweku, Sr.
Mr Kweku has over three decades of experience within the information technology and business development sector. This is further compounded by his decade of experience in the hospitality, real estate development and construction industry.
As of 2016, sitting as president of the Kweku Development Corporation (focused on residential and commercial development). As of 2006, he founded Smart Home Group, LLC, a property management firm.
However, prior to this, Mr Kweku chose to focus entirely on the Technology industry. Serving as the President of Kweku Technology Solutions from 1987 to 2010.
His recent experience within the construction and hospitality sector shines a clear focus on the potential target businesses of the IGAC SPAC.
Recently retired but not without just cause! Mr Wards most recent endeavor is as the owner of Ward Strategies LLC. His experience extends from 1979 till 2020 and has seen him serving across a multitude of positions.
Serving as the President of the New York Hotel & Motel Trades Council. A Union head with 35 000 constituents! Also a board member of the Convention and Visitors Bureau. Even a a former board member of the Metropolitan Transportation Authority.
The sheer amount of experience in the hospitality industry, has earned Mr Ward a seat at the IGAC SPAC.
Targeted Sector & Market Criteria
The efforts of the IGAC SPAC are to be focused on the leisure, gaming and hospitality industries. Considering the IPO valuation of the company at $300 million, the focused enterprise value is set to exceed $750 million.
There lays a heavy pressure upon the management team in order to identify and successfully lead a potential target to the public markets. Although the level of experience across every aspect of these sectors leaves little to be desired.
Following the pandemic, the IGAC SPAC has faith that both the valuations and growth opportunities within these industries have been reset.
We believe that there will be favorable macro demographic trends and a strengthening economy over the next six to twelve months, creating favorable acquisition opportunities.Form S-!/A Filings
This indicates a target acquisition within the next year. Certainly somewhat ambitious although Due Diligence might indicate otherwise.
Although it is true that the previous financial year saw the worst faring performance across the travel, tourism and leisure industries. Investing 101 has always led us to “Buy in the dip.”
This appears to be exactly what the IGAC SPAC is capitalizing on.
Want a deeper look? Check out the SEC Filings
Deal Flow Analysis
Tusk Venture Partners is an extremely well established and successful Venture Capital Firm. A look at the total assets under management reveal 6 LLCs and 5 LPs.
This is a clear indication of the Firms previous experience in taking companies public through the SPAC process. Certainly no stranger to the generation of post deal value, acquisitions and mergers.
The most noticeable funds, however, pale in comparison to the generated value of the IGAC SPAC. Tusk Venture Partners II in 2019 raised $70 million. And Tusk Venture Partners I LP assumed $36 million in 2016.
The company at larger, however, remains extremely active in the Investment industry. With an impressive 42 investments and 4 total exits.
However, the most noticeable of Tusk Ventures portfolio was its involvement of the insurance company, Lemonade Inc. (NYSE: LMND)
This excitingly fresh and new take on the stale insurance industry is certainly reaping benefits for shareholders. However, the involvement of Tusk Ventures in investing and guiding this company through the tedious IPO process indicates a positive future for the selected target of the IGAC SPAC.
IGAC SPAC In Summary…
The IG Acquisition Corporation still has many investors reeling. Considering the huge drop across the gaming, hospitality, leisure and tourist sectors will they really rise to previous heights?
Many are still uncertain, although the fantastic team behind the IGAC SPAC seem certain of the incoming upsurge across the financial year. This positive attitude, fantastic team and lofty ambition can be seen across the share price, regardless of its shaky start.
Although it is true that large purchases from a few investing “whales” can disrupt these share prices early on. It is clear to see the favorable trend in the company, especially since it is yet to identify a target.
Regardless, when a team like this is assembled in a scrambling sector that they forecast to rise.
Should you bet it all on black?