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Chamath Palihapitiya’s Ex-SPACs Tumble in April, Leading Industry Plunge

  • Key index off more than 70% since February 2021 to record low
  • Blank-check market oversaturated with over 600 seeking deals
Chamath Palihapitiya
Chamath PalihapitiyaPhotographer: Mark Kauzlarich/Bloomberg

The SPAC world’s rebound didn’t last long. After posting small gains throughout late winter, stocks of companies bought by blank-check firms plunged once again in April, including some created by the “SPAC King” himself, Chamath Palihapitiya.

Each of the four companies that merged with special-purpose acquisition companies led by Palihapitiya dropped at least 15% in the month. In some cases, such as Clover Health Investments Corp. and SoFi Technologies Inc., losses for the month were even bigger. All told, a benchmark index for SPACs that completed mergers is down more than 70% since peaking in February 2021.