SPY337.04+2.15 0.64%
DIA278.14+0.64 0.23%
IXIC11,326.51+159.00 1.42%

TPG Pace Tech Opportunities SPAC: What Investors Should Know

Private equity company TPG Capital is bringing another SPAC to the market with technology and media focused TPG Pace Tech Opportunities Corp (NYSE: PACE).

· 09/06/2020 09:07

Private equity company TPG Capital is bringing another SPAC to the market with technology and media focused TPG Pace Tech Opportunities Corp (NYSE:PACE).

The Leadership Team: The SPAC is led by Non-Executive Chairman and Director Karl Peterson, who is the founding President and CEO of Hotwire.com. Hotwire is now a unit of Expedia Group (NASDAQ:EXPE) after a $665 million acquisition by IAC/InteraActiveCorp (NASDAQ:IAC). Peterson is the Chairman of Sabre Corporation (NASDAQ:SABR) and Accel Entertainment (NYSE:ACEL).

President Greg Mrva has 25 years of experience in financial operations, including serving as the CFO of StubHub. Mrva has advised numerous companies on their IPOs including Alibaba Group (NYSE:BABA), GoDaddy Inc (NYSE:GDDY), and Snap Inc (NYSE:SNAP).

See Also: Aspirational Consumer Lifestyle Corp. SPAC: What Investors Should Know

TPG Capital has experience investing in many technology companies prior to its IPO including Airbnb, Box Inc (NYSE:BOX), Hotwire, Sabre Corporation, and Uber Technologies (NYSE:UBER).

TPG has brought numerous SPACS to market that have since acquired companies. This includes Accel Entertainment, Magnolia Oil & Gas Corporation (NYSE:MGY), and Playa Hotels and Resorts (NASDAQ:PLYA).

The Offering: TPG Pace Tech Opportunities is offering 45 million shares at a price point of $10. Each share will also come with one fifth of a warrant to buy shares at $11.50. 

TPG Pace Tech Opportunities: TPG Pace Tech believes there is a significant backlog of technology companies that want to go public. The company plans to use their experience in the sector to help a potential company through capital and hands-on operating to help install systems.

TPG Pace listed several items as criteria for being selected. This list includes being at an inflection point, having a unique product or service with a large market, underperforming potential, underexploited expansion, and offering an attractive risk-adjusted equity return opportunity.