Securities
Private placement warrants
Warrants the sponsor buys separately at fair value to fund the vehicle's costs.
These are sold to the sponsor at the same time as the IPO, at a price set to raise the cash needed for offering expenses and any trust overfunding.
They usually carry terms slightly friendlier than the public warrants, including cashless exercise, and are subject to transfer restrictions.
Related terms
At-risk capital
The money the sponsor puts in to cover offering costs and fund the trust above the IPO price, lost entirely if no deal closes.
Warrant
A right to buy a share at a fixed price, usually $11.50, exercisable only after a combination closes.
Sponsor
The entity that forms the SPAC, funds its costs, and holds the founder shares that pay off only if a deal closes.
See the term in the wild: the screener shows trust size, per-share value and deadlines for every U.S. SPAC, and each profile links to the filings the numbers came from.
Definitions describe market practice and are not investment, legal or tax advice.