Colin Kaepernick plans to raise $ 250 million for PSPC social justice

Former NFL quarterback Colin Kaepernick plans to raise $ 250 million for a special purpose acquisition company focused on racial equality and social justice issues.

PSPC, called Mission Advancement Corp., will target companies with an enterprise value of over $ 1 billion that have a scalable business model and established U.S. customer base.

PSPCs, commonly known as blank check companies, are created for the purpose of raising funds through an initial public offering in order to potentially acquire another company.

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Our mission is “to invest and develop a business in a way that has a significant financial, cultural and social impact,” said Mission Advancement Corp. in a US Securities and Exchange Commission file.

Investment firm Najafi Companies will work with Kaepernick, who acts as co-sponsor and co-chair, to leverage its marketing and experience with brands such as Nike Inc. and Walt Disney Co. Kaepernick, when ‘he was with the San Francisco. 49ers in 2016, knelt during an NFL game’s national anthem to raise awareness of social injustice and police brutality.

Kaepernick, who plans to remain as a “very committed owner” after the acquisition, will forgo up-front contractual payments in an effort to provide long-term value and competitive advantages to the target company.

The independent board of Mission Advancement Corp. is composed entirely of Blacks, Aboriginals and people of color and represented by a female majority.

Cantor Fitzgerald & Co. and Moelis & Co. are joint bookkeepers and Loop Capital Markets is the lead manager.

Kaepernick isn’t the only top athlete using a SPAC to get a company public.

Former MLB All-Star Alex Rodriguez announced earlier this month plans to raise $ 500 million for Slam Corp. This followed an announcement in October from NBA Hall of Fame Shaquille O’Neal, who serves as an advisor to Forest Road Acquisition.

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Last year, PSPCs became the preferred way for companies to go public in the United States

The 229 PSPCs that debuted in 2020 raised $ 76 billion, or 59% of all IPO funds in the United States, according to Goldman Sachs. This was an increase from the 52 PSPCs which raised $ 13 billion in revenue in 2019.