Social Capital Hedosophia Launches New SPAC | PYMNTS.com

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Social Capital Hedosophia is looking to raise $500 million for a new blank check company, Bloomberg writes.The vehicle is a partnership between veteran investors Chamath Palihapitiya and Ian Osborne, who have created three special-purpose acquisition companies (SPACs) in the past. Bloomberg writes that they’ve now confidentially filed with the Securities and Exchanges Commission (SEC), according to unnamed sources.A SPAC means a kind of blank check company solely forged for the purpose of taking companies public without going through the entire IPO process or identifying an acquisition target. They have become a trend lately, with executives like Gary Cohn, Bill Ackman and Barry Sternlicht pursuing the mode in recent weeks.The SPACs have been setting their sights on “unicorn” companies, meaning firms valued at more than $1 billion, PYMNTS writes. Ackman’s case, he said, grew out of watching the disappointing private investment and IPO failures amid the tumultuous stock markets of the pandemic, and wanting a more surefire way to fund promising ventures. While these types of companies don’t have operations of their own, the aim is to allow investors to throw money in to boost mergers and acquisitions in the long run.Social Capital Hedosophia, the fourth in as many …

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