Chamath Palihapitiya is the poster child for the SPAC boom that turned out to be a passing fad on Wall Street in 2020 and 2021. SPACs, or special-purpose acquisition companies, are basically empty companies that seek to buy existing businesses, and shareholders in them get a vote after SPACs find a target on whether to accept the deal or be refunded the $10-per-share par value. SPAC shareholders also get refunded if no deal can be found.
Palihapitiya was dubbed the SPAC king, for the voluminous deals the high-profile media personality brought to market. He did quite well, personally — roughly doubling the $750 million he put in, according to a New York Times calculation. And his seed money, for Virgin Galactic
SPCE,
+0.36%
and Clover Health
CLOV,
-2.26%,
was in part borrowed from the fallen Credit Suisse, the Financial Times reported, citing a public filing. Investors in his SPACs did not do so well. This table shows that the average SPAC he sponsored since inception has lost about half his value.
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Palihapitiya was dubbed the SPAC king, for the voluminous deals the high-profile media personality brought to market. He did quite well, personally — roughly doubling the $750 million he put in, according to a New York Times calculation. And his seed money, for Virgin Galactic
SPCE,
+0.36%
and Clover Health
CLOV,
-2.26%,
was in part borrowed from the fallen Credit Suisse, the Financial Times reported, citing a public filing. Investors in his SPACs did not do so well. This table shows that the average SPAC he sponsored since inception has lost about half his value.
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