Rose Hill Acquisition Corp., the SPAC founded by the young scion of a famous Dallas oil dynasty and fraternity brother, made its public debut Thursday after raising $ 125 million for a deal in Latin America.
The special purpose vehicle sold 12.5 million units at $ 10 each when it went public in the United States, it said in a statement. Units of the SPAC, led by 23-year-old Cornell alumni Albert G. Hill IV and Juan Jose Rosas, began trading on the Nasdaq Global Market under the ROSEU ticker.
The SPAC’s share price closed at $ 10.07 on Thursday.
The two are the latest in a string of ambitious young dealmakers trying to challenge the Wall Street elites who have capitalized on the SPAC boom, from hedge fund titan Bill Ackman to former Citigroup Inc. rainmaker Michael Klein. According to Bloomberg data, blank check companies have already raised $ 132 billion from IPOs in New York this year.
Hill is the great-great-grandson of oil baron HL Hunt, a gambler who turned into the energy business and built his fortune as a wildcat in East Texas in the 1930s. The tycoon’s sprawling family has been dubbed the true analogue of hit TV show Dallas, and Life magazine declared in 1948 that Hunt could be America’s richest person.
Hunt’s descendants poured their fortunes into a number of areas, from funding the formation of the American Football League to drilling for oil in Libya. In 2008 the Hunt family sold Petroleum to XTO Energy for $ 4.2 billion.
Hill and Rosas, a former pro junior tennis camp from Peru, played sports together at Cornell and were members of the Delta Upsilon fraternity. They both spent time at Chardan Capital Markets LLC, a boutique advisory firm that has niche established itself in arranging listings of SPACs.
Hill most recently worked for Guggenheim Securities in the biopharmaceuticals and biotechnology investment banking division. During his tenure at Guggenheim, Hill completed over $ 7.6 billion in transactions including Jazz Pharmaceuticals’ purchase of GW Pharmaceuticals for $ 7.2 billion and the $ 425 million acquisition of OncoImmune by Merck & Co. for a therapeutic treatment of COVID-19, according to an investor prospectus.
The address of their SPAC listed in their investor prospectus is a $ 9 million mansion in Atlanta, described in an old property listing as “one of the most important residences in the south.”
The duo are receiving discounted stocks that should help them benefit well from a successful business. According to data provider SPAC Research, they are among more than a dozen people aged 30 and under named as executives or board members of blank check companies who have filed listing plans since early June.
You will soon be looking for profitable Latin American companies with a long track record of success looking for capital. Rose Hill’s sweet spot will be companies valued at under $ 1 billion, for which a SPAC merger will help bypass illiquid local markets and develop a US investor base.
Rose Hill Acquisition’s donors include Cohen & Co. and Chiles Ameris Capital. The board members include a former executive of a top Brazilian fund manager, veterans of Banco Santander SA and UBS Group AG as well as the ex-CEO of one of the largest corporate groups in Peru.
Cantor Fitzgerald LP arranged the offer.
Ben Scent, Bloomberg