Proteolysis targeting chimera (PROTAC) is a novel drug modality that facilitates the degradation of a target protein by inducing its proximity with an E3 ligase. In this work, we present a new computational framework to model the binding cooperativity of PROTAC, an important property for therapeutic performance. The binding cooperativity reflects how the presence of the E3 ligase changes the binding energies between the PROTAC and the target protein, principally through protein-protein interactions (PPIs) induced by the PROTAC. Due to the scarcity and low resolution of experimental measurements, the physical and chemical drivers of these non-native PPIs remain to be elucidated. We develop a coarse-grained (CG), alchemical approach to explore the fundamental physics of PROTAC-mediated PPIs, which enables converged thermodynamic estimations. Using a minimal forcefield, we successfully capture general principles of the cooperativity, including the optimality of intermediate PROTAC linker lengths that results from entropic considerations. We qualitatively characterize the dependency of cooperativity on PROTAC linker lengths and protein charges and shapes. Minimal inclusion of sequence-and conformation-specific features in our current forcefield, however, limits quantitative modeling to reproduce experimental measurements, but further parameterization of the CG model may allow for efficient computational screening to optimize PROTAC cooperativity.