Dealflow | September 10, 2020

TPG’s ‘special purpose acquisition company’ aims at sustainable business

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, September 10 – TPG Pace Group, a holding company of TPG, launched TPG Pace Beneficial Finance to acquire an unnamed business on the grounds of its environmental, social and governance, or ESG, profile. Special purpose acquisition company, or SPAC, is looking to raise $350 million, though TPG has not indicated the type of business it plans to purchase. 

SPACs are becoming increasingly common as a way to raise capital through initial public offerings in order to acquire another company. They are often called a “blank check” companies because sponsors forming them, like TPG, don’t need to specify their investment plans.

In an SEC filing, TPG Pace said it is looking for businesses already creating a positive impact, using ESG to outperform their peers, or where TPG can help accelerate ESG initiatives to improve outcomes. TPG’s impact measurement arm, Y Analytics, will set impact goals (see, Rise Fund’s new impact measurement business”).

“Green” companies that have announced plans to IPO through SPACs include QuantumScape, which makes batteries for electric vehicles. It is merging with SPAC Kensington Capital Acquisition and will trade on the New York Stock Exchange. Electric vehicle tech company Hyliion is merging and going public with SPAC Tortoise Acquisition. 

Also jumping on the SPAC bandwagon: EV makers Canoo, Lordstown Motors, Fisker and Nikola.