(Reuters) – Two Special Purpose Acquisition Companies (SPACs), backed billionaire investor Ken Moelis (NYSE 🙂 have rescinded their plans to launch initial public Offerings in the United States. According to regulatory filings, Wednesday’s.

ACI Corp III, and Atlas (NYSE) Crest Investment Corp IV had applied for their IPOs in March 2013 and were hoping to raise a total of $1 billion.

Moelis was one of a few high-profile investors and investment bankers, including Bill Foley, Chamath Palihapitiya and Chamath Palihapitiya who took advantage of SPACs’ lucrative dealsmaking frenzy to make a profit.

However, the interest has declined in this market with shares of Grab Holdings (and BuzzFeed Inc) falling after they merged with SPACs.

Investor appetite has been dampened by high redemption rates by SPAC investors, and volatility in U.S markets due to rate rise concerns and geopolitical tensions.

Moelis founder and chief executive of Investment Banking firm, Moelis has backed a SPAC Moelis & Co Archer Aviation Inc., an electric aircraft startup, had previously been taken public by. The companies were forced to alter terms on the agreement to decrease Archer’s enterprise value to $1 billion.

SPACs, which are publicly traded companies that have no operations and a pool capital that has been raised via an IPO, can be used to merge with private businesses in transactions that make the private firms public.