Warburg Pincus files two SPACs targeting to raise a total of $750m

REUTERS/Dado Ruvic

Private equity firm Warburg Pincus is looking to raise up to $750 million for two blank-check firms that could merge with businesses with near-term potential to bring in strong free cash flow, according to regulatory filings on Wednesday.

The blank-check firms, Warburg Pincus Capital Corporation I—A and Warburg Pincus Capital Corporation I—B, said they are aiming to raise up to $250 million and $500 million respectively.

SPACs (special purpose acquisition companies) are shell companies that go public, typically at $10 a share, through an initial public offering and use the proceeds to buy a private firm, usually within two years. The private firm then becomes publicly traded as a result.

The alternative route to going public, which gained popularity in 2020, has not lost steam in 2021. Online lending startup Social Finance (SoFi), billionaire Tilman Fertitta’s hotel company Fertitta Entertainment and Blackstone’s benefits services provider have all announced mergers with SPACs so far this year.

SPACs raised $24.26 billion in January, 20 times more than the same period in 2020, Refinitiv data showed. Last month’s haul was already 30% of the total $79 billion raised by SPACs in the whole of 2020.

Earlier this month, a SPAC backed by private equity firm KKR & Co also filed for an IPO of up to $1 billion.

Warburg Pincus Capital Corporation I—A and Warburg Pincus Capital Corporation I—B will list on the New York Stock Exchange under the symbols ‘WPCA.U’ and ‘WPCB.U’ respectively.

Citigroup, Credit Suisse and Evercore ISI are the underwriters for both the offerings.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.