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TPG closes SPAC after failing to find deal

Chibuike Oguh

NEW YORK (Reuters) – A blank-check firm backed by private equity firm TPG Inc said on Friday it planned to fail to find a suitable target to merge.

TPG Pace Beneficial Finance Corp said it will start returning funds to investors after the two-year period to find the target company expires. It raised about 350 million dollars in its initial public offering (IPO) in October 2020.

As TPGY’s IPO closes its two-year anniversary in October, we do not believe we will be able to complete the business combination that we expected,” Karl Peterson, the company’s chairman, said in a regulatory filing.

TPG-backed special purpose acquisition company (SPAC) reached agreement with electric vehicle charging company EVBox Group two months after its December IPO 2020, but The agreement came a year later, after unsatisfactory issues were discovered during due diligence, Peterson said.

TPG has been a prolific sponsor of SPACs among private equity firms. Its TPG Pace Beneficial II raised 350 million in April 2021 IPO, while TPG Pace Tech Opportunities II canceled raising $450 Investors received $1 million in April due to market volatility.

TPG spokesperson declined to comment.

SPAC is empty Shells raise capital to acquire private companies to go public, allowing these companies to bypass traditional IPOs and enter the public market.

Investor interest in SPACs has cooled over the past year as more Stringent regulation, rising interest rates and falling public market valuations.

Several prominent SPAC sponsors, including Chamath Palihapitiya and hedge fund manager Bill Ackerman, after failing to find suitable targets , closed the Blank Check Company in recent weeks.

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