SPAC IPO FILING: Transformation Capital… Public Hedge Fund? (TCY, TCY.U, AINV)

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Transformation Capital is another special purpose acquisition company or SPAC that has filed to come public via an initial public offering.  The company has many options like all SPAC filings indicate, although it intends to initially focus on the alternative asset management sector.  In short, we’re about to have either a hedge fund or other alternative asset management company coming public.

Its plans to offer 15 million units at an expected price of $10.00 that will consist of a share of stock and one warrent per unit.  Transformation will list on the AMEX under the ticker "TCY.U." There is also an overallotment of 2.25 million units, so this could raise $172.5 million if fully subscribed.  Banc of America was listed as the sole book-running manager for the SPAC IPO.

Randall Yanker is the company’s CEO, and he is a former CEO of Lehman Brothers Alternative Investment Management.  According to the filing, he has more than 25 years of trading, investment management and biz-dev experience with investment banks including Salomon Brothers, Swiss Bank Corporation and Lehman Brothers. Randy is also a co-founder and senior partner of AAM, a private investment boutique focused on advising institutions on alternative asset management.

Elliot Stein Jr. is the chairman with more than 30 years, and he is a director of Apollo Investment Corporation (NASDAQ: AINV), a publicly traded closed-end, non-diversified management investment company.  Rodney Yanker is chief operating officer, secretary and director, and he worked at firms such as Deloitte & Touche and at Ramsey Financial. He is also co-founder of AAM.

It sure sounds like we are about to have another public hedge fund operator, or at least something close to it.

Jon C. Ogg
March 3, 2008