Business Context and Reporting Period
Company: Fortress Value Acquisition Corp. V (FVAV)
Reporting Period: Quarter ended June 30, 2026 (Q2 2026)
Entity Type: Cayman Islands exempted company; Special Purpose Acquisition Company (SPAC)
Status: Emerging Growth Company; Shell Company; Non-accelerated filer
Business Overview: The Company was formed to effect a merger, share exchange, or asset acquisition with one or more businesses. It has no operating revenues and generates income solely from interest and dividends on Trust Account investments. The Company consummated its Initial Public Offering (IPO) on February 27, 2026, and the underwriter exercised the full over-allotment option in March 2026.
Key Financial Metrics
| Metric | Value (as of/for period ended June 30, 2026) |
|---|---|
| Trust Account Balance | $290,864,766 |
| Cash (Outside Trust) | $924,227 |
| Total Assets | $292,170,321 |
| Total Liabilities | $17,175,805 |
| Deferred Underwriting Commissions | $15,812,500 |
| Net Income (6 Months) | $2,510,672 |
| Net Income (3 Months) | $1,716,485 |
| Operating Expenses (6 Months) | $890,844 |
| Interest & Dividend Income (6 Months) | $3,364,766 |
| Working Capital Deficit | ~$57,750 (Current Liabilities $1.36M vs Current Assets $1.31M) |
| Shares Outstanding (Class A) | 28,950,000 (28,750,000 subject to redemption) |
| Shares Outstanding (Class B) | 7,187,500 |
Material Changes vs. Prior Period
- Balance Sheet Transformation: Total assets increased from $614,979 at December 31, 2025, to $292.2 million at June 30, 2026, driven by the IPO and over-allotment exercise.
- Trust Account Funding: The Trust Account balance grew from $0 to $290.9 million following the deposit of IPO proceeds ($287.5 million) and accrued interest.
- Liabilities: Total liabilities increased from $662,119 to $17.2 million, primarily due to the recognition of $15.8 million in deferred underwriting commissions and accrued offering costs.
- Equity Structure: The Company moved from a small shareholders' deficit to a significant temporary equity classification ($290.9 million) for Class A shares subject to redemption, while permanent shareholders' deficit increased to $(15.9 million) due to the remeasurement of redemption value.
- Over-Allotment: The over-allotment option liability was extinguished in March 2026 upon full exercise by the underwriter, resulting in a gain of $36,750 recorded in the six-month period.
Outlook, Risks, and Management Commentary
- Liquidity: Management believes the $0.9 million in cash held outside the Trust Account is sufficient to meet working capital needs for at least one year. The Company may seek additional financing or Working Capital Loans from the Sponsor if necessary.
- Business Combination Timeline: The Company must complete an initial Business Combination within 24 months of the IPO closing (February 27, 2026), or 27 months if a letter of intent is executed within the first 24 months. Failure to do so will result in liquidation and redemption of public shares.
- Redemption Rights: Public shareholders may redeem shares for a pro rata portion of the Trust Account (approx. $10.12 per share as of June 30, 2026) upon the completion of a Business Combination or liquidation.
- Risks: Key risks include the inability to complete a Business Combination, market volatility affecting the Trust Account value, and the potential for significant redemptions reducing available cash for the transaction. The Company is subject to risks associated with emerging growth companies.
- Related Party Transactions: The Sponsor pays a monthly fee of $20,000 for office space and administrative services. The Sponsor holds 7,127,500 Founder Shares and 200,000 Private Placement Shares.
Investor Verification Checklist
- Trust Account Yield: Verify the current interest rate environment and its impact on the Trust Account balance, which currently stands at ~$10.12 per share.
- Redemption Thresholds: Confirm the specific redemption rights and the 15% limit on aggregate redemptions by any single shareholder group without consent.
- Deferred Commissions: Note the $15.8 million deferred underwriting fee payable only upon a successful Business Combination; this reduces net proceeds available to the combined entity.
- Extension Options: Review the specific conditions under which the 24-month deadline can be extended to 27 months.
- Sponsor Commitment: Verify the Sponsor's liability to indemnify the Trust Account against third-party claims, ensuring the $10.00 per share floor is protected.