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. (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 is now a unit of Expedia Group (EXPE) after a $665 million acquisition by InteraActiveCorp. (IAC). Peterson is the Chairman of Sabre Corporation (SABR) and Accel Entertainment (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 (BABA), GoDaddy Inc. (GDDY), and Snap Inc. (SNAP).

TPG Capital has experience investing in many technology companies prior to its IPO, including Airbnb, Box Inc. (BOX), Hotwire, Sabre Corporation, and Uber Technologies (UBER). TPG has also brought numerous SPACS to market that have since acquired companies. This includes Accel Entertainment, Magnolia Oil & Gas Corporation (MGY), and Playa Hotels and Resorts (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.

© 2020 Benzinga does not provide investment advice. All rights reserved.

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