Chamath Palihapitiya: King of SPACs


Chamath Palihapitiya, widely recognized as the poster-child for the SPAC (special purpose acquisition company) phase, made waves in the world of finance in 2020 and 2021. SPACs, essentially empty entities created to acquire existing businesses, allowed shareholders to vote on whether to accept a deal or receive a refund of the $10 per share par value. Palihapitiya, referred to as the SPAC king, played a key role in bringing numerous high-profile deals to the market.

While personally enjoying significant financial success, with his initial investment of $750 million roughly doubling in value, Palihapitiya’s SPAC investors did not fare as well. The average SPAC sponsored by him since inception has lost approximately half its value, as evidenced by the table presented below.

Amidst discussions surrounding Palihapitiya’s performance, one of his comments about the markets garnered attention. He urged investors to “stop being a victim” and declared his active participation in the arena of innovation.

It is worth noting that Palihapitiya did not advocate for other investors to follow suit when he chose to sell the SPACs he sponsored.

From the Archive: Chamath Palihapitiya Criticizes Media’s Failure to Expose FTX Issues Prior to Collapse

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