Alternative Investment News has reported that Hanover-STC Acquisition Corp., a newly formed blank check company backed by several veterans of the hedge fund and private equity space, is targeting alternative investment firms. The special purpose acquisition company is planning an initial public offering to raise $150 million, according to a filing with the Securities and Exchange Commission.
Hanover-STC plans to offer a hedge fund, private equity or real estate firm access to public markets. The company will only seek a deal where it can become the controlling shareholder. It has not yet identified any targets.
One of the key backers behind the venture is Stone Tower Capital, which manages $7.7 billion in credit strategies. Also heavily involved is the U.S. subsidiary of New Zealand financial services firm Hanover Group, which manages private equity investments.
Michael Gross, one of the founding principals of Apollo Investment Management, is also in the mix. Hanover-STC is planning to sell 18,750,000 units at $8 per security. Mark Klein of Hanover, who is also the SPAC’s CEO, declined to comment, citing the firm’s quiet period following the filing of its registration statement.