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The investment strategy is a pivot from how SPACs typically raise money, which typically relies on Wall Street banks from funding and usually only raises 3-5% from retail investors, according to Business Insider. However, UBS is hoping to bring SPACs to market that raise as much as 20% of its funding from retail investors. SPACs are funds that raise money and go public with the aim of acquiring a company.

"As wealthy investors looking for alpha, we think our wealth clients are ideal holders of SPACs and as such our private wealth network is a tremendous potential opportunity for us to enhance our investment banking," Jeff Mortara, head of ECM origination at UBS, said.

SPACs are a lucrative investment opportunity because of its higher liquidity compared to private equity investments. SPACs that do not acquire a company within two years give investors the opportunity to have their money back. Additionally, when an acquisition is made, initial investors typically have a chance to gain equity in the acquired company.

SPACs have been growing in popularity as an investment tool. Last year, $13.6 billion was raised in investment capital through SPACs and $7.6 billion has been raised this year.

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