The SPAC market experienced a significant downturn in the third quarter, with IPO volume falling to a five-year low. Merger deadline extensions have given some SPACs more time to find a target, increasing our SPAC Attack Index, but the rate of growth has slowed as less capital enters the system. Investors are becoming increasingly hesitant to fund new SPACs as rising interest rates drive up the cost of capital. The number of canceled transactions also increased amid higher redemption rates and regulatory scrutiny. Given the fierce competition among SPACs looking for a limited number of remaining merger targets, SPACs are expanding the scope of their target search beyond the typical high-growth companies, providing an exciting opportunity for high-quality middle-market companies to be taken public.