Definition
A SPAC's escrowed IPO proceeds – Substantially all of a SPAC»'s IPO gross proceeds, held in a segregated account and invested only in short-term U.S. government securities or money-market funds until a Business Combination closes or the SPAC liquidates and returns the funds pro rata to public shareholders. Structured so the sponsor cannot spend it before a deal, and shareholders who dislike the eventual merger target can redeem their shares for a pro-rata slice of it instead. Found In: Balance Sheet, Notes to Financial Statements (SPAC disclosures)