Aug 25, 2020
TPG planning two blank-check IPOs amid SPAC boom
, Bloomberg News
Private equity firm TPG is preparing to raise around US$700 million via two blank-check companies that would add to this year’s already record tally for such deals, according to people with knowledge of the matter.
TPG is planning for one of the special purpose acquisition companies, or SPACs, to focus on the technology sector, while the other will seek out a target that operates in the environmental, social and governance, or ESG, industry, said the people, who asked not to be identified because the information is private.
The firm is aiming to take both blank-check firms public this quarter, although its plans could change, said the people. A representative for TPG declined to comment.
TPG is among several firms with a lengthy track record for SPACs before this year’s boom. One of its partners, Karl Peterson, leads its SPAC business.
Through its three previous SPACs, TPG has taken public Playa Hotels & Resorts, slot machine operator Accel Entertainment and EnerVest Ltd.’s South Texas division to form Magnolia Oil & Gas Corp.
This year, 78 SPACs have raised a combined total of almost US$31 billion on U.S. exchanges, topping every previous year with four months still to go in 2020, according to data compiled by Bloomberg.
Private equity firms and high-profile dealmakers have joined in on the deals, which pool money to shop later for acquisitions. Last month, billionaire investor Bill Ackman raised US$4 billion in the biggest-ever SPAC offering. Executive Network Partnering, with former U.S. House Speaker Paul Ryan as its chairman, filed Monday to raise US$300 million.
TPG, which focuses on buyouts and growth investments, has stayed active during the coronavirus pandemic. It invested US$600 million for a 0.93 per cent stake in Jio Platforms Ltd., the telecommunications and digital services business of Reliance Industries Ltd., India’s largest company. The firm also raised a fund to invest in minority positions in public companies.
It raised over US$1.7 billion earlier this year in the first close of its social-impact fund Rise Fund II.