Over the past three years, Chamath Palihapitiya refashioned himself from venture capitalist to mogul in the world of special purpose acquisition companies, or SPACS, the once-obscure financial vehicles also known as blank-check funds that rocketed in popularity — and stock market value — during the pandemic.
Mr. Palihapitiya is now making a partial retreat.
The investor announced on his blog on Tuesday that his firm, Social Capital, was winding down two of the SPACs it had co-created, and would return the money they had raised to investors. Together, the two funds oversee roughly $1.6 billion.
The announcement by Mr. Palihapitiya, the financier once known as the “SPAC king,” is the latest sign of how far out of love Wall Street has fallen with blank-check funds.
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