Chamath Palihapitiya Returns to SPAC Market with $250 Million 'American Exceptionalism' Deal Targeting AI, Energy, and Defense

'SPAC King' Chamath Palihapitiya Returns With $250 Million 'American Exceptionalism' Deal Targeting AI, Energy, Defense - Clover Health Investments (NASDAQ:CLOV), Opendoor Technologies (NASDAQ:OPEN)

Venture capitalist Chamath Palihapitiya, once dubbed the "SPAC King," is returning to Wall Street with a new blank-check deal. American Exceptionalism Acquisition Corp. filed a Form S-1 on Monday with the U.S. Securities and Exchange Commission, seeking to raise $250 million through an initial public offering. Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedInteractive BrokersTrade global markets with low costs and pro-level tools at Interactive Brokers.Get StartedRangeRange delivers AI-powered wealth management at a fraction of the cost. Get StartedRocket HELOCGet a HELOC with mid-600s credit -- borrow and repay on repeat. Get StartedPacasoJoin 10,000+ investors betting on Pacaso's global expansion at $2.90 per share.Get StartedWorthy BondsEarn 7% fixed interest with Worthy Bonds -- start investing with just $10.Get StartedNinjaTraderNinjaTrader gives you futures access with low day-trading margins.Get StartedIRA FinancialInvest your IRA or 401(k) in real estate, crypto, and more with IRA Financial. Get StartedAcornsGrow wealth effortlessly -- Acorns invests your spare change automatically. Get StartedSmartAssetFind a vetted financial advisor near you in minutes with SmartAsset's free tool. Get StartedNew Vehicle with Strategic Focus The Cayman Islands-registered Special Purpose Acquisition Company will trade under the ticker AEAC.U once public, according to SEC filings. The firm plans to target industries tied to artificial intelligence, clean energy, and U.S. defense technology -- sectors Palihapitiya described as "core to maintaining American leadership." Lessons From Past SPACs The move comes after a social media poll in June showed 70% of respondents opposed to his launching another SPAC, citing steep investor losses from earlier deals. Data compiled by Sigma shows investors who put $100 into each of Palihapitiya's SPACs at their December 2021 peak would now face losses of about 73%. Past ventures included Clover Health Investments Corp. CLOV, Opendoor Technologies Inc. OPEN, SoFi Technologies Inc. SOFI and Virgin Galactic Holdings Inc. SPCE. Many of those companies have seen valuations collapse, with Clover and Akili Inc. approaching zero enterprise value. See Also: Warren Buffett, Cathie Wood Share 2 Stock Investments In Common: Can You Guess What They Are? Market Backdrop Palihapitiya previously shuttered two $1.6 billion SPACs in 2022 after evaluating more than 100 companies without securing a merger, according to The Wall Street Journal. Rising interest rates and inflation have severely disrupted the SPAC ecosystem, forcing other sponsors, such as Pershing Square's Bill Ackman, to return capital as well. Why It Matters for Investors Despite investor pain, Palihapitiya's Social Capital still generated an estimated $750 million in profits from SPAC deals, according to WSJ reporting. His renewed push suggests a bet that U.S. capital markets will reward innovation in AI, energy transition, and national security. Read Next: 'Quiet Cracking' Replaces 'Quiet Quitting' As New Workplace Risk, Experts Say The Warning Signs Can Be Subtle Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors Photo courtesy: CarlaVanWagoner / Shutterstock.com CLOVClover Health Investments Corp$2.62-1.14%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum16.51Growth23.36QualityN/AValue69.13Price TrendShortMediumLongOverviewOPENOpendoor Technologies Inc$3.7718.9%SOFISoFi Technologies Inc$24.302.23%SPCEVirgin Galactic Holdings Inc$3.010.67%Market News and Data brought to you by Benzinga APIs

Palihapitiya returns to SPAC market with American Exceptionalism's IPO filing

(Reuters) -Venture investor Chamath Palihapitiya, dubbed Wall Street's "SPAC king" for his high-profile blank-check deals, is set to take his latest special purpose acquisition vehicle public, marking his return to the market after several years. American Exceptionalism Acquisition Corp, chaired by Palihapitiya, will list on the New York Stock Exchange under the ticker 'AEXA', a filing showed late on Monday. The SPAC plans to raise $250 million to target companies in artificial intelligence, energy, decentralized finance and defense sectors. A SPAC is a shell firm that raises money through an IPO to merge with a private business and take it public, offering companies an alternative route to the market that bypasses the longer and more costly traditional IPO process. SPAC deals hit record levels in 2020 and 2021, before activity slowed sharply in the following years as regulatory scrutiny increased and investors soured on the once-popular vehicle. During the peak, several Wall Street heavyweights, including billionaire investors Bill Ackman and Michael Klein, joined Palihapitiya in betting on SPACs as the next big trend in the listings market. Despite backing from big-name investors, many SPACs failed to secure merger targets, while others completed deals with heavy redemptions or saw their shares plunge after debut. But Palihapitiya strongly believes in the vehicle. "When I raised my first SPAC in 2017, I wanted to help correct an increasingly unstable balance between the private and public markets," he said in a letter to investors. "While SPACs are not the solution for every issue in the IPO process, I continue to believe that they have an important piece to play in capital formation - and especially now." SoFi Technologies is among Palihapitiya's most successful bets, with the consumer lender now valued at nearly $29 billion. In January 2021, it had agreed to go public in a blank-check deal valued at around $8.65 billion. (Reporting by Manya Saini in Bengaluru; Editing by Shinjini Ganguli)