US$43 mln investment turns into a US$3.3bil windfall


The Lucid Air speed test car is displayed at the 2017 New York International Auto Show in New York City

NEW YORK: Veteran dealmaker Michael Klein and his partners have made a paper gain of nearly US$3.3 billion on their $43 million personal investment in the blank-check acquisition firm they are merging with luxury electric vehicle startup Lucid Motors Inc, according to Reuters calculations.

The gain, within just a few weeks, came from the meteoric rise in the shares of Klein's special purpose acquisition company, SPAC Churchill Capital IV Corp. It is by far the most striking example of a Wall Street insider benefiting from the amateur trading frenzy in shares such as GameStop Corp, sweeping the world of SPACs.

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