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TPG's ESG SPAC TPG Pace Beneficial Finance files for a $350 million IPO

September 4, 2020

TPG Pace Beneficial Finance, a blank check company formed by TPG Pace Group targeting a business with a strong ESG profile, filed on Friday with the SEC to raise up to $350 million in an initial public offering.

The Fort Worth, TX-based company plans to raise $350 million by offering 35 million units at $10. Each unit consists of one share of common stock and one-fifth of a warrant, exercisable at $11.50. The company may raise an additional $50 million at the closing of an acquisition pursuant to a forward purchase agreement with TPG. It also plans to enter into additional forward purchase agreements with TPG and other third party entities for $50 million. At the midpoint of the proposed range, TPG Pace Beneficial Finance would command a market value of $438 million.

The company is led by Chairman Karl Peterson, a Senior Partner of TPG and Managing Partner of TPG Pace Group, the firm’s effort to sponsor special purpose acquisition companies and other permanent capital solutions for companies; and President Michael MacDougall, who currently serves in a leadership role for the TPG Pace Group. Director David Bonderman is a Founding Partner of TPG. The company plans to target a business with attractive fundamentals and strong environmental, social and governance principles and practices.

TPG Pace Beneficial Finance was founded in 2019 and plans to list on the NYSE under the symbol TPGY.U. The company filed confidentially on July 29, 2020. Deutsche Bank, J.P. Morgan, Barclays and TPG Capital BD are the joint bookrunners on the deal.