IPO Stocks to Sell Now: TPG Pace Holdings (TPGH.UN)
TPG Pace Holdings (NYSE:TPGH.UN) is a blank-check company. Selling 40 million shares June 30 at $10 each, the SPAC is sponsored by San Francisco-based private equity firm TPG, a company with $73 billion in assets under management.
The two TPG people behind TPG Pace are David Bonderman, Chairman, and Karl Peterson, a managing partner at TPG and the person responsible for finding an appropriate company to acquire using the proceeds from its IPO along with any debt necessary to complete a transaction within 27 months of its June 27 offering.
There are two things I don’t like about this IPO. The first is that the founding partners, Bonderman and Peterson and the rest of the gang at TPG get 20% of the company for a mere $25,000 investment. That’s just shy of a $100 million bonus for finding a company to acquire using your money. It’s a nice gig.
The second is that TPG did this back in 2015 raising $450 million, which it used to buy Playa Hotels & Resorts NV (NASDAQ:PLYA) for $1.8 billion in December 2016. The $25,000 invested in 2015 is now worth $87 million.
Private equity already does well without your charity.