Koch, Eyeing $3 Billion in Growth Equity Bets, Backs EV Charging Group
(Bloomberg) -- Koch Strategic Platforms has made an investment in EVBox Group, the electric-vehicle charging specialist that agreed to go public through a merger with TPG Pace Beneficial Finance Corp.
“We believe there are huge opportunities for charging and EVBox will become a global leader,” KSP President David Park said in an interview. He said the companies will consider installing charging stations at Koch offices across the globe. He declined to provide the size of the firm’s commitment to EVBox, which hasn’t previously been disclosed.
Since November, the new growth equity arm of Koch Investments has invested $1.2 billion across four thematic sectors: computing and connectivity; energy transformation; industrial automation; and health care, Park said. Roughly $350 million is energy transformation, including through private investments in public equity, or PIPEs, supporting SPAC mergers with REE Automotive, Freyr AS and Microvast.
By year-end, the Koch unit is targeting a total outlay of $2 billion to $3 billion.
“We’re looking to take material minority equity positions in great companies with strong management teams that operate in industries with tailwinds,” Park said. “We want to partner with companies that can potentially transform Koch Industries and experience a mutual benefit by accelerating growth with our assistance in penetrating the U.S. market or through sharing in-house technology and sales capabilities.”
Park said that Atlanta-based KSP, which can commit between $50 million and $1 billion in one fell swoop, is a long-term, patient investor. Its mandate includes pre-IPO equity bets, SPAC and non-SPAC PIPEs, structured equity and even debt. Senior executives who will be underwriting investments for KSP include managing directors Jeremy Bezdek, Adam DeWolf and Seth Walton, Park said.
Koch Investments has separately made SPAC investments, and recently participated in the PIPE supporting TPG Pace Tech Opportunities Corp.’s merger with online learning platform Nerdy Inc.
Koch Industries is the largest privately held company in North America with more than $115 billion in revenue. The family is the third richest in the world, according to the Bloomberg Billionaires Index.
©2021 Bloomberg L.P.