There's no question that the SPAC frenzy has slowed substantially from its frenzied peak late last year, but even as the pace of dealmaking has slowed (giving weary junior investment-banking analysts a rest), there's little question that the SPAC trend has changed the nature of dealmaking, especially for Private Equity firms, as Institutional Investor pointed out. PE firms are sponsoring a growing percentage of SPACs, as these firms take advantage of the power of public markets to generate capital - even as their LPs will always be better positioned thanks to the benefits bestowed on SPAC sponsors (including generous warrants and free stakes).

But as the trend continues to snowball, one company caught the attention of Bloomberg reporters when it announced plans to launch a SPAC specifically to buy back a former subsidiary business that it spun off with a SPAC ln late 2019. So basically, they're launching a SPAC to take over another SPAC. It's a SPAC inside a SPAC for investors who really like SPACs.

But we digress: The scenario revolves around a drugmaker called Roivant Sciences, which wants to merge with a SPAC then take over a SPAC that acquired Immunovant from Roivant.

For those who aren't familiar with its business Roivant is a kind of incubator: it uses its subsidiaries to develop drugs, then takes some of them public.

But here's the key to the whole deal: Roivant says it knows something that everyone else doesn't about its former unit, and that this special sauce is why it's willing to pay a massive premium for the shares (perhaps as much as 70%).