{"id":1715,"date":"2025-09-30T17:05:02","date_gmt":"2025-09-30T17:05:02","guid":{"rendered":"https:\/\/finzexpert.com\/blog\/one-time-spac-king-palihapitiya-launches-new-blank-check-vehicle-with-plan-to-temper-retail-fervor\/"},"modified":"2025-09-30T17:05:02","modified_gmt":"2025-09-30T17:05:02","slug":"one-time-spac-king-palihapitiya-launches-new-blank-check-vehicle-with-plan-to-temper-retail-fervor","status":"publish","type":"post","link":"https:\/\/finzexpert.com\/blog\/one-time-spac-king-palihapitiya-launches-new-blank-check-vehicle-with-plan-to-temper-retail-fervor\/","title":{"rendered":"One-time &#8216;SPAC King&#8217; Palihapitiya launches new blank-check vehicle with plan to &#8216;temper&#8217; retail fervor"},"content":{"rendered":"\n<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-106853952\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Venture capitalist Chamath Palihapitiya.<\/p>\n<p>Mark Kauzlarich\/Bloomberg via Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Chamath Palihapitiya, once dubbed Wall Street&#8217;s &#8220;SPAC King,&#8221; is back with a new blank-check vehicle and a promise to do better after a bruising track record.<\/p>\n<p>Palihapitiya on Monday launched the American Exceptionalism Acquisition Corp. A (AEXA), a $345 million SPAC that he said was more than five times oversubscribed, drawing $1.4 billion in demand. The vehicle, which will trade on the New York Stock Exchange, is designed to target companies in AI, energy, defense and decentralized finance.<\/p>\n<p>&#8220;These are areas where I believe American entrepreneurship can still lead the world, and where a disciplined, institutionally backed vehicle can add value,&#8221; the 49-year-old the Social Capital CEO and former\u00a0Facebook\u00a0executive said in a post on X.<\/p>\n<p>The SPAC was up 3% in early trading Tuesday.<\/p>\n<p>Palihapitiya once helped ignite the SPAC boom among retail investors during the pandemic in 2020, but his first wave of deals mostly lead to poor returns. <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-3\">Virgin Galactic<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> lost more than 90% of its value, while <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-4\">Clover Health<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> trades around only $3 compared to the $15 peak after regulatory scrutiny and a short-seller report. <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-5\">Opendoor<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>, which had fallen into a penny stock earlier this year, became a meme name supported by retail traders, but the stock is still about half of its record price in 2021.<\/p>\n<p>SPACs are\u00a0special purpose acquisition companies, which raise capital and use the cash to merge with a private company and take it public, usually within two years.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\">Improving the SPAC structure<\/h2>\n<div class=\"group\">\n<p>Now, Palihapitiya said AEXA is structured differently. The SPAC will carry no warrants, and his compensation vests only if shares rise at least 50% after a deal. Meanwhile, just 1.3% of the allocation went to retail investors, he said.<\/p>\n<p>&#8220;I want to temper retail investors&#8217; involvement with my SPACs,&#8221; he said. &#8220;This deal was built for institutional investors. Specifically, 98.7 percent went to large institutions, each picked explicitly by me.&#8221;<\/p>\n<p>Palihapitiya&#8217;s return comes as he has recast himself both politically and publicly. A longtime Democrat donor who once floated a run for California governor, he has more recently aligned with President Donald Trump&#8217;s politics. At the same time, he has built a media platform through the All-In Podcast, where he and other tech investors debate politics and markets, often favoring the views of the Trump Administration.<\/p>\n<p>SPACs are having a resurgence after a sharp, two-year slowdown as\u00a0regulatory scrutiny, disappointing post-merger performance and rising rates dampened investor appetite. Many SPACs liquidated rather than find deals, and the once red-hot sector became a cautionary tale.\u00a0Now, with traditional initial public offerings returning and the broader stock market charging ahead, dealmakers are dusting off the structure.<\/p>\n<p>&#8220;No one can predict what will happen in the future so be safe out there and no crying in the casino,&#8221; Palihapitiya said.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Venture capitalist Chamath Palihapitiya. Mark Kauzlarich\/Bloomberg via Getty Images Chamath Palihapitiya, once dubbed Wall Street&#8217;s &#8220;SPAC King,&#8221; is back with a new blank-check vehicle and a promise to do better after a bruising track record. Palihapitiya on Monday launched the American Exceptionalism Acquisition Corp. A (AEXA), a $345 million SPAC that he said was more [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1716,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[1652,1655,1650,225,1648,1651,1136,1564,1649,1654,1653],"class_list":["post-1715","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan","tag-blankcheck","tag-fervor","tag-king","tag-launches","tag-onetime","tag-palihapitiya","tag-plan","tag-retail","tag-spac","tag-temper","tag-vehicle"],"_links":{"self":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/1715","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=1715"}],"version-history":[{"count":0,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/1715\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media\/1716"}],"wp:attachment":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=1715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=1715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=1715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}