Here’s Chamath Palihapitiya’s investment argument for his Clover SPAC

Here’s Chamath Palihapitiya’s investment argument for his Clover SPAC

Chamath Palihapitiya

Cameron Costa | CNBC

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Chamath Palihapitiya just unveiled his next “10x idea” with his latest SPAC deal to take health care insurance startup Clover Health public.

Clover will go public via a merger with Social Capital Hedosophia Holdings Corp. III, a special purpose acquisition company. The deal values Clover at $3.7 billion and includes up to $1.2 billion in cash proceeds. The billionaire investor believes the company has the potential to generating returns worth 10 times the original investment. 

“What we have is a business that’s actually delivering the promise of technology-improving, better outcomes and lower cost health care,” Palihapitiya said on CNBC’s “Squawk Box” on Tuesday. It’s “a market that I think is huge and growing quickly” and a business “that is consistently taking share year over year over year.”

“This is one of the most straightforward investments I’ve ever made,” Palihapitiya said. He added by 2023 the company will have overall profitability. 

In a CNBC interview on Tuesday, Palihapitiya broke down his investment thesis in Clover, a seven-year-old company that sells Medicare Advantage in the U.S.

Here’s how the Social Capital CEO made the case and the slides he used to make it.

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