SilverBox’s Latest SPAC Fundraise Makes Case for Thinking Small

The leaders of SilverBox Capital raised $138 million for their third blank-check company, SilverBox Corp. III, in February, less than half of what such firms amassed at their peak in 2021, as the industry increasingly thinks small to adapt to hard times.

For SilverBox Capital Managing Partner Joe Reece, the shrunken special-purpose acquisition company is more investor- and target-friendly. It pays lower fees to bankers, has less of an overhang from sweeteners like warrants that can dilute ownership and gives sponsors a smaller share of the merged company.

“Smaller is better when it comes from a target’s standpoint ...