TPG closes SPAC after failing to reach agreement

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NEW YORK – A blank check firm backed by private equity firm TPG Inc said on Friday it planned to halt operations and return cash to investors after failing to find a suitable target with which to merge during market volatility.

TPG Pace Beneficial Finance Corp said it would start returning money to investors after it hit the two-year deadline to find a target company. It raised around $350 million in an initial public offering (IPO) in October 2020.

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“With our second anniversary of the close of TPGY’s IPO approaching in October, we do not believe we will be able to achieve a business combination that meets our expectations,” said Karl Peterson, Chairman. company in a regulatory filing.

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The TPG-backed Special Purpose Acquisition Company (SPAC) had reached an agreement with electric car charging company EVBox Group two months after its IPO in December 2020, but that agreement was terminated a year later after that unsatisfactory issues were uncovered during due diligence, Peterson said. .

TPG has been a prolific sponsor of SPAC among private equity firms. Its TPG Pace Beneficial II had raised $350 million in an April 2021 IPO, while TPG Pace Tech Opportunities II scrapped a plan to raise $450 million from investors in April this year. due to turbulent markets.

A spokeswoman for the TPG declined to comment.

SPACs are shell companies that raise funds to acquire private companies with the goal of taking them public, allowing those companies to bypass a traditional IPO to enter public markets.

Investor appetite for SPACs has cooled over the past year due to tighter regulation, rising interest rates and falling public market valuations.

Several high-profile SPAC sponsors, including Chamath Palihapitiya and hedge fund manager Bill Ackman, have shut down companies with blank checks in recent weeks after failing to find suitable targets. (Reporting by Chibuike Oguh in New York; Editing by David Gregorio)


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