HomeTechnologyPalihapitiya to wind down two blank-check firms as choppy markets deter valuations

Palihapitiya to wind down two blank-check firms as choppy markets deter valuations

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Prolific SPAC investor Chamath Palihapitiya is winding down two of his blank-check corporations after failing to search out appropriate goal firms inside a deadline as uneven public markets dampen investor sentiment for the as soon as high-flying funding automobiles.

Social Capital Hedosophia Holdings Corp IV and Social Capital Hedosophia Holdings Corp VI will return the funds raised to shareholders, Palihapitiya stated in a weblog publish on Tuesday.

The two shell firms had been shut down after they failed to finish business combos by Oct. 14, in line with regulatory filings.

The corporations raised $400 million and $1 billion in preliminary public choices in October 2020 and supposed to give attention to companies within the technology sector.

“Over the past two years, we evaluated more than 100 targets and while we came close to doing a deal several times, we ultimately walked away each time,” Palihapitiya stated.

Palihapitiya has been one of the crucial outstanding faces of SPACs, merging them with a variety of firms, from house tourism agency Virgin Galactic Holdings Inc to on-line lending startup SoFi Technologies Inc and biotech ProKidney Corp.

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His transfer to wind down the 2 shell firms comes at a time when the frenzy round listings via the SPAC route has slowed after almost two years of immense reputation.

“Ultimately, to get a deal done would have required us stretching on price or buying an inferior asset – neither were things we felt comfortable doing,” Palihapitiya stated.

Billionaire investor William Ackman who raised $4 billion within the biggest-ever SPAC additionally instructed buyers in July he could be returning the sum after failing to discover a appropriate goal firm to take public via a merger.

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