Erika Karp shared her thoughts on Special Purpose Acquisition Companies (“SPACs”) from a sustainable investing perspective.
“Their audience is already wary, said Erika Karp, chief impact officer of Pathstone, an advisory firm to wealthy families. Sustainably minded investors are skeptical about SPACs, given that the starting premise — you’ll find out what you own later — is antithetical to that style of investing, which champions transparency, she says.”
“’Investors in SPACs take a big leap of faith for the sponsor; the sponsor takes another leap of faith in the company they buy,’ Karp said. ‘There are lots of leaps of faith going on here.’”