Chamath Palihapitiya's 14 SPAC, PIPE Deals: Tracking Lifetime Performance — And The Past Week's

Chamath Palihapitiya has been labeled the King of SPACs and it could be for good reason. On Friday, investors got an update from Palihapitiya on how his SPAC investments have performed since inception, in 2021 and during the past down week.

The Palihapitiya SPACs: Palihapitiya has plans to bring SPACs public with tickers IPOA to IPOZ. So far, six SPACs have launched under the Social Capital Hedosophia umbrella. Seven more recently filed their names with the SEC for future launches.
Here is a look at how the SPAC deals have performed:

  • Virgin Galactic SPCE was the first SPAC deal completed by Palihapitiya. Shares of the space company are up 172.9% since the offering and up 15% in 2021.
  • Opendoor Technologies OPEN is an on-demand digital experience to buy and sell a home. Opendoor shares are up 119.9% since IPOB went public. Shares of Opendoor are down 3.3% in 2021.
  • Clover Health CLOV offers Medicare Advantage plans. The company has been the worst performing of the Palihapitiya SPACs. Shares are down 21.6% since the offering of IPOC and down 53.2% in 2021.
  • Social Capital Hedosophia Holdings Corp IV IPOD has not named a merger target yet. Shares of IPOD are up 23.2% since the offering and down 10% in 2021.
  • Social Capital Hedosophia Holdings Corp V IPOE announced a merger with fintech company SoFi in January. Shares of IPOE are up 77.2% since the offering and up 42.4% in 2021.
  • Social Capital Hedosophia Holdings Corp VI IPOF has not named a merger target yet. Shares of the largest SPAC offering from Palihapitiya are up 22.9% since the offering and down 0.1% in 2021.
  • Related Link: 5 Things You Might Not Know About Chamath Palihapitiya

The PIPE Deals: Along with his own six SPACs, Palihapitiya has funded eight SPAC deals as a member of the PIPE (Private Investment in Public Equity — a way to attract investment from accredited investors).

  • MP Materials MP is a rare earth mining company whose materials could be used to support electric vehicles and wind turbines in the future. Shares of MP Materials are up 291% since inception and up 21.5% in 2021.
  • Desktop Metal Inc DM is a 3D printing company focused on additive manufacturing. Shares of Desktop Metal are up 57% since the offering and down 8.7% in 2021.
  • Metromile Inc MILE is a pay-per-mile insurance company backed by Mark Cuban and Palihapitiya. Shares of Metromile are up 4.5% since the offering and down 32.8% in 2021.
  • ArcLight Clean Transition Corp ACTC is taking electric bus company Proterra public in a SPAC deal. Shares of the SPAC are up 66.1% since the offering and up 49.9% in 2021.
  • TS Innovation Acquisition Corp TSIA is bringing Latch, an enterprise SaaS company, public in a SPAC deal. Shares are up 13.5% since the offering and up 5.1% in 2021.
  • Spartan Acquisition Corp II SPRQ is taking Sunlight Financial public. Sunlight is a residential solar financing company. Shares of the SPAC are up 12.9% since the IPO and up 11.6% in 2021.
  • RMG Acquisition Corp II RMGB is taking Renew Power, India’s largest renewable energy company, public in an $8 billion deal. Shares of the SPAC are up 5.1% since the IPO and up 5.1% in 2021.
  • Revolution Acceleration Acquisition Corp RAAC is taking Berkshire Grey public in a $2.7 billion deal. The company uses artificial intelligence for robotics and automation. Shares of the SPAC are up 8.4% since inception and up 8.4% in 2021.

Rough SPAC Week: The last week has been a rough one for SPACs, and Palihapitiya shared some lessons learned.

All of his six SPACs and eight PIPE deals had negative week-over-week performance, according to a tweet from Palihapitiya. The average loss was 14.3% week-over-week for the 14 SPACs Palihapitiya has been involved in.

See also: How to Invest in SPACs How to Invest in SPACs

The S&P 500 was up 0.8% on the week and the Invesco QQQ Trust QQQ was down 1.7% for the week.

In early February, Palihapitiya shared an update on how his deals had performed. At that time, the average return was 47% in 2021 and an average lifetime gain of 137%.

The latest update shows an average return of 3.6% in 2021 for Palihapitiya’s 14 related SPACs. The lifetime average gain is now 60.9% on the 14 SPAC deals.

Disclosure: Author is long shares SPCE, IPOD, IPOF, RMGB and RAAC.


Photo by JD Lasica on Flickr.


Posted In: Chamath PalihapitiyaS&P500Social Capital HedosophiaSPACSPACsNewsSmall CapIPOsTrading Ideas