Gores Investment Withdraws IPO

Gores Investment Corp., a new business development company formed by Los Angeles billionaire Alec E. Gores, canceled plans to raise as much as $250 million in an initial public offering.

Gores Investment said in a Securities and Exchange Commission filing that it terminated its IPO because of “market conditions.” It is the fourth U.S. investment fund to delay or withdraw a proposed share sale, following Porticoes Capital Corp. and vehicles formed by Evercore Partners and Blackstone Group.

The funds were structured as business development companies, which buy loans, preferred stock and debt that can be converted into equity.

Alec Gores, who founded Gores Technology Group in 1987, has invested in or acquired 35 companies and usually invests in technology and telecommunications firms, a May SEC filing said. Forbes magazine estimates his net worth at $1.6 billion.