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Chamath Palihapitiya Returns To SPACs: Past 18 Deals, Investments Average Loss Of 14%

Investor Chamath Palihapitiya, once known as the "SPAC King," is back with a new SPAC, signaling a potential top or bottom for the SPAC market, with investors cautious after past returns from completed mergers.

Here's a look back at Palihapitiya's SPAC history, including deals he helped finance, details of the new SPAC and what's next.

The New SPAC: Palihapitiya filed for a planned listing of American Exceptionalism Acquisition Corp A on the New York Stock Exchange with the ticker AEAC.

The SPAC plans to raise $250 million and units come with no warrants this time around.

Palihapitiya's new SPAC plans to invest in a company in the sectors of artificial intelligence, clean energy, U.S. defense or decentralized finance.

The new SPAC follows Palihapitiya’s asking his followers on X if he should launch another SPAC. The majority of respondents (70.7%) said no to a new SPAC with over 55,000 people voting in the poll. Palihapitiya brushed off the results and said there is "no crying in the casino!!," which hinted that he may be bringing a new investment vehicle to market in the future.

In the filing for American Exceptionalism Acquisition Corp A, Palihapitiya mentions that SPACs have in the past had inefficient pricing mechanisms, misaligned incentives and no long-term impacts. The new SPAC will attempt to change that by making founder shares only vest if the stock hits milestone prices of $12.50, $15.00, $17.50 and $20.00, instead of simply the $10 offering price.

Read Also: Chamath Palihapitiya Asks Just 1 Interview Question, And Says It Filters Out The Fakes

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