- Billionaire Chamath Palihapitiya filed for four new biotech-focused SPACs on Wednesday.
- Each seeking to raise $200 million, the SPACs have distinct focuses within the healthcare sector.
- They fall under a partnership between VC firm Social Capital and Suvretta Capital Management.
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Chamath Palihapitiya filed for four blank-check companies on Wednesday along with a new partner, according to paperwork registered with the Securities and Exchange Commission.
The latest additions build on his roster of 6 special-purpose acquisition companies already raised, yielding more than $1 billion.
The four new SPACs are launched under a partnership between Palihapitiya’s venture firm Social Capital and hedge fund Suvretta Capital Management. One of Suvretta’s core investing strategies is to identify companies that are disruptive to the healthcare sector.
The companies may initially pursue a combination target in any industry as part of its proposed business strategy, filings state. Each SPAC is seeking to raise $200 million with ultimate specific focuses within the biotech industry: neurology, oncology, organs, and immunology.
They are each named Social Capital Suvretta Holdings Corp., distinguished by the Roman numerals I, II, III, and IV. The tech billionaire has said he plans to eventually do 26 SPAC deals, one for every letter of the alphabet.
Palihapitiya will serve as CEO and chairman, while Suvretta’s healthcare portfolio manager, Kishen Mehta, will serve as president.
“Our company unites scientists, physicians, entrepreneurs and biotechnology-oriented investors around a shared vision of identifying and investing in innovative and agile biotechnology companies,” the filing stated.
The SPACs, which carry the ticker symbols DNAA, DNAB, DNAC, and DNAD, are expected to trade on the Nasdaq.
Suvretta, founded in 2011 by former Soros fund manager Aaron Cowen, is dedicated to three investing strategies. One of these is its healthcare-focused unit Averill, set up in March 2020.
Palihapitiya first began making big money during his early days as an employee at Facebook, but became even more accomplished as a VC by backing companies like Box, SurveyMonkey, Yammer, and Slack. He has made a name for himself as the “SPAC King,” by kicking off mergers that took companies such as insurance startup Clover Health and Opendoor public.
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