B Capital launches SPAC

The prospectus doesn’t disclose who owns the SPAC sponsor entity, but B Capital is described as an affiliate of the sponsor. The SPAC – known as B Capital Technology Opportunities Corp – will leverage the VC firm’s ecosystem of partners and their expertise to evaluate opportunities and have access to its resources with a view to identifying post-acquisition operational improvements.

Facebook co-founder Eduardo Saverin, who established B Capital in 2015 with Raj Ganguly, previously of Velos Partners and Bain Capital, will serve as a special advisor to the SPAC. Ganguly is CEO, with Howard Morgan, B Capital’s chairman, taking on the same role at the SPAC. Kabir Narang, a founding general partner of the firm, will be president.

The other management team members are Angela Huang and Bruce Aust. Huang is a managing director of EE Capital, Saverin’s family office, where she leads investments in PE and hedge funds. She previously worked at Hillhouse Capital. Aust was formerly vice chairman of NASDAQ.

B Capital Technology Opportunities will target technology or technology-enabled businesses that have the potential to scale and go cross-border. There is a particular interest in companies capable of transforming traditional industries, including consumer enablement, financial services, health and wellness, and industrials and transportation.

B Capital Technology Opportunities is planning the standard SPAC offering: 30 million units priced at $10 apiece, with an overallotment option of 4.5 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 $9 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.

B Capital closed its second fund last year at $820 million, up from the $360 million for its debut vehicle. The firm has approximately $1.65 billion in capital and invests across the start-up spectrum, from early to late stages. It has backed more than 66 companies to date. The B Capital team comprises over 80 investment and operating professionals across four offices. Its Asia base is Singapore.

A host of Asia-related SPACs have been launched by PE firms – serving as sponsors or designated affiliates of the structures – and by individuals with experience in the industry. The Southeast Asia contingent includes Vickers Venture Partners, which recently raised $120 million for technology deals, and Peter Thiel and Richard Li, who raised $299 million for their second SPAC.

Of the most recent wave, two have announced combinations. A SPAC backed by Korea’s ACE Equity Partners acquired Achronix Semiconductor Corp, a US semiconductor company, last month, while a structure established by Ravi Thakran, formerly Asia head of L Catterton, plans to merge with US-based aviation business Wheels Up.

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• Topics
• Southeast Asia
• Fundraising
• IPO
• Technology
• North America
• Asia
• USA
• TMT
• B Capital
• SPAC