
Olympus-sponsored SPAC raises $130m
Olympus Capital has raised $130 million for a special purpose acquisition company (SPAC), which it is sponsoring via its fifth pan-Asian fund.
OCA Acquisition will target US-based businesses with an enterprise value of $750 million to $1 billion that offer technology-enabled services – primarily healthcare and education – and financial services. According to the prospectus, it will consider opportunities that for the most part do not fall within the remit of Olympus’ funds, thereby mitigating any potential conflicts of interest.
It is one of a growing number of Asia-related SPACs with direct ties to private equity firms, which serve as sponsors of the structure as designated affiliates. GPs that have launched SPACs include Primavera Capital Group, Vickers Venture Partners, CITIC Capital, and ACE Equity Partners. In other cases, these entities are backed by individuals with experience in the private equity industry.
OCA Acquisition’s sponsor is a portfolio company of Olympus Capital Asia V, which closed in 2017 with $291 million in commitments, AVCJ Research’s records show. The fund has also provided most of the risk capital behind the SPAC’s launch. OCA Acquisition will have complete access to the private equity firm’s team, deal prospects, and network, plus sourcing, diligence, and operational resources.
David Shen, regional managing director at Olympus, is CEO and president of the SPAC, while Daniel Mintz, the private equity firm’s founder, is a director. Jeffrey Glat, CFO at Olympus, is performing the same role for OCA Acquisition.
They are joined by Gary Bennett, formerly CEO of New York Life International, Alec Ellison, chairman of OurCrowd International, Christine Houston, founder of Executive Search Group International, Emmanuel Pitsilis, formerly of McKinsey & Company, and Jacob Robbins, a food and agricultural technology specialist who previously worked for Coca-Cola.
OCA Acquisition sold 13 million units for $10 apiece, with an overallotment option of 1.95 million units. Each unit comprises one class A ordinary share and one-half of one redeemable warrant. Each whole warrant can be converted into a class A ordinary share at a price of $11.50 per share.
Once a target is identified, a majority of investors must vote in favor of the transaction. On completion, they can exercise their warrants and purchase shares or redeem some or all their shares for cash. If there is no deal within 24 months of the offering, investors get their money back.
The SPAC sponsor agreed to purchase $6.38 million in warrants, subject to the standard conversion conditions. In addition, the sponsor and management subscribed to class B shares for a nominal sum that will convert into a 20% stake in the entity on completion of the offering.
Founded 1997, Olympus has invested more than $2.6 billion in over 60 companies. It focuses on middle-market businesses that benefit from Asian domestic consumption and urbanization trends while capitalizing on opportunities created by market crises or dislocations. Its most active sectors are financial and business services, food and agribusiness, healthcare, and environment. Nearly half of the capital invested has gone into deals with a cross-border component.
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.