GigCapital Global recently announced the detailed concept of deploying its well established Private to Public Equity (PPE) strategy, which it believes to differentiate the franchise in the Special Purchase Acquisition Company (SPAC) universe, as an alternative pathway for venture capital, private equity and other portfolio-owner firms seeking liquidity and continued value creation from their highest quality portfolio companies. Established in 2017, GigCapital Global has deployed its Private to Public Equity (PPE) and Mentor-Investor strategy from inception, building a nearly decade long track record of forming, financing and supporting companies through their transition from private enterprises to publicly traded companies and continuing to support them after the deSPAC IPO. The strategy is designed for companies that may be too valuable to sell, too mature to finance indefinitely through private markets, and likely better positioned to create long term value as public companies, enjoying the richer tool-box of capital offerings at the public market.
Unlike a conventional sale, in which ownership of the asset and its future upside transfers to a buyer, GigCapital Global’s Private to Public Equity (PPE) approach is designed to create a pathway to liquidity while preserving continued ownership and control, and participation in future growth. It also provides a real risk-mitigation liquidity approach, where the owners don’t have to wait for an exit event for monetization, but can enjoy the public share currency for controlled and measured liquidity and return on their investment generation. Unlike a traditional IPO process undertaken independently by a private company, the GigCapital Global Mentor-Investor model provides an active and long-term operating partnership in all operational areas of capital markets, governance, financing and strategic support before, through and after the public market transition. The presentation describes a targeted three to five year partnership following the deSPAC IPO, including board support, operating mentoring, financing, M&A networking and execution, and strategic growth support.
“Private to Public Equity (PPE) is not a new strategy for GigCapital Global. It is the strategy we have been developing and executing since we established GigCapital Global in 2017,” said Dr. Avi Katz, Founding Managing Partner and Executive Chairman of GigCapital Global, a 40-year executive, investor and entrepreneur of the High-Tech industry. “Over nearly a decade, we have built a repeatable model around taking companies from the private market into the public market by reverse merging technology small-cap companies into a public-traded shell and continuing to work with them after the transaction. We are now bringing that accumulated experience, operating capability and capital markets infrastructure directly to venture capital and private equity sponsors as an alternative to selling an asset or continuing to finance it indefinitely. The objective is straightforward, to create a controlled and valuable liquidity for investors while building their best portfolio companies as public leader and stable continuous growth enterprise, while preserving them the opportunity to participate in the next chapter of value creation.”
The financial history underlying the strategy demonstrates the scale of GigCapital Global’s execution. According to GigCapital Global’s current review, GigCapital Global’s history includes fifteen public offerings from inception in 2017 through 2026, six successfully completed deSPAC-IPO transactions, with the seventh likely shortly to take place, and numerous transactions and funding activities at the various stages of the companies that GigCapital Global deSPACed and has been involved with after the deSPAC IPO. Between 2017 and 2026, GigCapital Global and its deSPACed entities raised more than USD 3 billion from the founding of the Private to Public Equity (PPE)/SPAC and the deSPAC-IPOs, and almost USD 1 billion in financing after the deSPAC IPOs, representing almost 4 billion of total capital raised for the entities. GigCapital Global’s deSPACed portfolio companies span across a wide range of high-tech industries including semiconductors, cloud-connectivity, healthcare, medical equipment, energy, alternative artificial intelligence, and micro-nuclear reactors, and has approximately USD 1.2 billion of 2026 AUM across its active Private to Public Equity (PPE)/SPAC companies and its deSPACed companies.
