Chamath Palihapitiya's SPAC Track Record Means Double-Digit Losses For You. Here Are The Details On All His Deals

Zinger Key Points
  • Chamath Palihapitiya once had plans to bring SPACs public using the tickers IPOA to IPOZ.
  • Palihapitiya has been a part of 18 total SPACs counting his own and PIPE deals.

Chamath Palihapitiya was one of the biggest names in the SPAC market in 2021 and when times were good for new companies going public, Palihapitiya had some of the best-performing deals of that year.

The year 2022 has not been as kind to Palihapitiya with re-valuations on many of the companies that went public by investors seeing shares below the former $10 price point of the SPACs.

Here’s an updated look at the performance of the SPAC deals, remaining SPACs and PIPE deals that included Palihapitiya, with returns calculated on the $10 offering price and not factoring in warrants.

The Palihapitiya SPACs:

Virgin Galactic Holdings Inc SPCE: Space travel
Price: $6.88
Return: -31.2%

Opendoor Technologies Inc OPEN: Online home buying and selling
Price: $5.20
Return: -48.0%

Clover Health Investments CLOV: Online health insurance
Price: $3.20
Return: -68.0%

Social Capital Hedosophia Holdings Corp IV IPOD: No target announced
Price: $9.98
Return: Flat

SoFi Technologies Inc SOFI: Financial technology
Price: $7.02
Return: -29.8%

Social Capital Hedosophia Holdings Corp VI IPOF: No target announced
Price: $9.99
Return: Flat

Social Capital Suvretta Holdings Corp I DNAA: Pending merger with digital medicine company Akili Interactive
Price: $9.36
Return: -6.4%

Social Capital Suvretta Holdings Corp II DNAB: No target announced
Price: $9.76
Return: -2.4%

ProKidney Corp PROK: Treating chronic kidney diseases
Price: $7.56
Return: -24.4%

Social Capital Suvretta Holdings Corp IV DNAD: No target announced
Price: $9.79
Return: -2.1%

Related Link: 5 Things You Might Not Know About Chamath Palihapitiya 

The PIPE Deals: Along with his own SPACs, Palihapitiya has also been a part of the funding of several SPAC deals as a member of the PIPE (Private Investment in Public Equity). Here’s a look at how these stocks have done since going public.

Mp Materials MP: Rare earth minerals
Price: $35.81
Return: +258.1%

Desktop Metal Inc DM: 3D printing
Price: $3.25
Return: -67.5%

Metromile Inc: Pay-per-mile insurance company
Price: Was acquired by Lemonade Inc LMND; Metromile last closing at $1.05
Return: -89.5%

Proterra Inc PTRA: Electric buses
Price: $6.57
Return: -34.3%

Latch Inc LTCH: Enterprise SaaS
Price: $1.16
Return: -88.4%

Sunlight Financial Holdings Inc SUNL: Residential solar financing
Price: $3.24
Return: -67.6%

ReNew Energy Global PLC RNW: Renewable energy
Price: $6.71
Return: -32.9%

Berkshire Grey Inc BGRY: robotics and automation
Price: $2.51
Return: -74.9%

The Returns: Palihapitiya has been a part of a total of 18 SPAC deals. The list includes 10 of his own SPACs with six having mergers done or pending. Palihapitiya was also involved in eight PIPE deals. The investor may not have a stake in all the companies listed above, but here is a look at how the 18 deals have performed from the $10 price point to Aug. 17, 2022.

18 Total SPAC deals: -22.7% average

10 Chamath-led SPACs: -21.2% average

6 Chamath-led SPACs with deals: -34.6% average

8 PIPE deals: -17.0%

What’s Next: Palihapitiya previously had plans to bring SPACs public with tickers IPOA to IPOZ but stopped issuing new SPACs under this ticker scheme at IPOF. The investor issued four biotech SPACs in his most recent offering.

Two of the biotech SPACs found deals and two are still searching for targets.

IPOD and IPOF remain two of the largest SPACs seeking target companies. IPOD and IPOF recently filed for an extension vote to extend the deadline by one year from Oct. 14, 2022 to Oct. 14, 2023.

“While the company is currently evaluating several business combination opportunities, the board of directors of the company has determined that there may not be sufficient time before October 14, 2022, to consummate a business combination,” the filing reads for IPOF.

The vote will be closely watched to see if a high amount of shares are redeemed at trust value or if shareholders keep their faith in Palihapitiya to deliver strong deals in the future.

Disclosure: Author is long IPOD, IPOF and MP.

Photos: Christopher Michel via Flickr Creative Commons

Posted In: M&ANewsPenny StocksSmall CapIPOsTop StoriesAfter-Hours CenterTrading IdeasBiotech StocksChamath Palihapitiyaclean energy stocksPipeSocial CapitalSPACSPACs