Small-Cap Sentiment and SPAC Outcomes
In this SPAC Podcast Spotlight, Managing Director Dimitre Genov of Brookline Capital Markets explains how small- and mid-cap equity markets directly affect SPAC redemptions and aftermarket performance. He highlights how “risk-on” market conditions can lower redemptions, while volatility and rising interest rates often drive investors to redeem shares rather than hold post-merger equity.
Dimitre also discusses how sector trends, valuations, and company narratives shape outcomes. De-SPACs in areas like AI, clean energy, and infrastructure have shown stronger performance, while others may trade sideways until milestones are met. The discussion underscores how sentiment, execution, and timing all play critical roles in SPAC market performance.
Disclaimer:
The views, opinions, and statements expressed by the guest are solely their own and do not necessarily reflect the views of The SPAC Podcast, its hosts, or affiliated organizations. This content is for informational purposes only and should not be construed as investment, legal, or financial advice.
Connect with the Guest:
Dimitre Genov – Brookline Capital Markets:
https://brooklinecapmkts.com/
LinkedIn: https://www.linkedin.com/in/dimitre-genov-6136182/
View all of their episodes here:
https://www.thespacpodcast.com/guests/dimitre-j-genov/
Connect with the Hosts & The SPAC Podcast:
Michael Blankenship LinkedIn: https://www.linkedin.com/in/mikeblankenship/
Joshua Wilson LinkedIn: https://www.linkedin.com/in/joshuabrucewilson/
YouTube Channel: https://www.youtube.com/@Thespacpodcast
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Contact The SPAC Podcast:
https://www.thespacpodcast.com/contact/
Disclaimers:
The views, opinions, and statements expressed by the guest are solely their own and do not necessarily reflect the views of The SPAC Podcast, its hosts, or affiliated organizations. This content is for informational purposes only and should not be construed as investment, legal, tax, or accounting advice.
Michael J. Blankenship is a licensed attorney and is a partner at Winston & Strawn LLP. Joshua Wilson is a licensed Florida real estate broker and holds FINRA Series 79 and Series 63 licensure. The content of this podcast is intended for informational and educational purposes only and should not be interpreted as legal, financial, or compliance advice. The views and opinions expressed by the hosts and guests are their own and do not necessarily reflect the official policies or positions of any regulatory agency, law firm, employer, or organization.
Listeners are encouraged to consult their own legal counsel, compliance professionals, or financial advisors to ensure adherence to applicable laws and regulations, including those enforced by the SEC, FINRA, and other regulatory bodies. This podcast does not constitute a solicitation, offer, or recommendation of any financial products, securities transactions, or legal services.
Let’s Connect on LinkedIn:
👉 Michael J. Blankenship - https://www.linkedin.com/in/mikeblankenship/
👉 ...
Michael (00:00): So how are public equity markets, especially the small- and mid-cap segment, impacting SPAC redemptions and aftermarket performance?
Dimitre Genov (10:14): Yes, SPACs are very sensitive to broader market sentiment, especially sentiment in the small- and mid-cap space because that’s where a lot of the de-SPACs land. They’re usually companies with market caps under five billion, and very often under a billion. When markets are risk-on, redemptions drop and stocks trade better.
But when volatility picks up and interest rates climb, investors get more cautious and often redeem their shares rather than stay in the entity post-merger. They don’t want to assume equity risk after the de-SPAC. That being said, momentum matters.
De-SPACs in sectors with strong secular tailwinds — like AI, clean energy, and infrastructure — tend to hold up better. There’s also a growing understanding that the quality of the target, the management team, the valuation, and the narrative all play a critical role. If a company is perceived as a good value with a clear, credible story, we see better trust retention and stronger aftermarket performance.
Some companies trade sideways for a period post-merger until milestones are achieved. Once those milestones are hit, sentiment can shift, and stocks may begin to perform stronger. Aftermarket performance, then, is not just about macro factors — it’s about execution, perception, and timing.
Dimitre Genov has three decades of experience in investment banking, special situations investing, finance and asset management. Dimitre Genov is currently a Managing Director at Brookline Capital Markets, advising clients on traditional public, private, and other alternative capital-raising and investment strategies including SPACs, PIPEs, private placements and public offerings. Before Brookline Capital Markets, Dimitre was a Portfolio Manager at Balyasny Asset Management, where he was part of the event-driven group, managing a SPACs’ portfolio with peak AUM of over $1bn. Prior to Balyasny, Dimitre worked at Magnetar Capital where he was a Sector Head for a SPACs’ portfolio with over $1B of peak AUM. Prior to Magnetar, Dimitre was a Partner and Director of Research at Noster Capital, where he focused on global value investing and special situations. Prior to Noster Capital, he was a Portfolio Manager at Julius Baer, where he co-managed the Global Equity and Global Balanced Asset Allocation funds with over $1B peak AUM. Prior to Julius Baer, he was a Portfolio Manager and Senior Analyst in JP Morgan’s Global Event-Driven Group. Dimitre Genov started his career at Lazard as an investment banker, advising companies on capital markets financings, mergers and acquisitions and restructurings.
Dimitre received a dual M.B.A. with Honors from Columbia Business School and London Business School, and a B.A. with Honors in Applied Mathematics and Economics from Harvard.