Note: This article has been updated to clarify that the aquisition is expected to be a company, not an investor, as first stated. Further context around SPACs was also added.
UK-based impact investment house Bridges Fund Management is looking to raise up to $400m to fund the acquisition of a stake in an unnamed socially-focused company, according to a filing with the Securities and Exchange Commission this week.
Bridges has partnered with US private equity group AEA Investors to IPO a ‘special purpose acquisition company’ or SPAC. This legal entity, also known as a ‘blank-check company’, is used to fund the acquisition of a separate company which is not divulged ahead of time to investors.
Reuters has reported that the SPAC is targeting a “business that is working toward the UN’s Sustainable Development Goals”, while a release described it only as an organisation that aligns with an “impact-driven investment focus and provide attra…