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SPAC King Palihapitiya Shutters Two SPACs as Deal Hunt Fails

  • Social Capital Hedosophia VI, Social Capital IV will close
  • Valuations, volatility were biggest barriers to closing deals
Chamath Palihapitiya
Chamath PalihapitiyaPhotographer: David Paul Morris/Bloomberg
Updated on

“SPAC King” Chamath Palihapitiya is winding down two blank check firms after a hunt to find targets to take public came up empty as the industry fizzles.

Social Capital Hedosophia VI, his largest ever special purpose acquisition company which raised $1.15 billion, and Social Capital IV, which pulled in $460 million from investors, will be shut down and give cash back to investors, according to regulatory filings. Last month, the two SPACs launched by Palihapitiya said they needed to push back the October deadlines they had set to make acquisitions.