by Chibuike Oguho
NEW YORK (Reuters) – A blank check firm backed by private equity firm TPG Inc said Friday it was shutting down operations and withdrawing money to investors after failing to find suitable targets for a merger amid market volatility. plan return.
TPG Pace Beneficial Finance Corp said it will begin returning money to investors after the two-year period for finding the target company. The company raised around $350 million in an initial public offering (IPO) in October 2020.
Carl Peterson, President of the Company, said in a regulatory filing, “Comparing with our second anniversary of the completion of TPGY’s IPO in October, we do not believe that we will be able to complete a business combination that meets our expectations. “
Peterson said the TPG-backed Special Purpose Acquisition Company (SPAC) struck a deal with electric car charging company EVBox Group two months after its IPO in December 2020, but canceled that agreement a year later because unsatisfactory issues were uncovered during due diligence became. said Peterson. ,
TPG is a successful sponsor of SPAC among private equity firms. TPG Pace Beneficial II raised $350 million in an IPO in April 2021, while TPG Pace Tech Opportunities II scrapped plans to raise $450 million from investors in April this year due to unsettled markets.
A TPG spokeswoman declined to comment.
SPACs are shell companies that raise funds to acquire private companies to take them public, bypassing traditional IPOs to gain a foothold in public markets.
Strict regulations, rising interest rates and falling public market valuations have dampened investor appetite for SPAC over the past year.
Several major SPAC sponsors, including Chamath Palihapitiya and hedge fund manager Bill Ackman, have shut down blank check companies in recent weeks after failing to find suitable targets.
(Reporting by Chibuike Oguh in New York; Editing by David Gregorio)