Join the space race with investment trusts

Since SpaceX showed the world that launching rockets and deploying satellites could be a highly profitable business, an entire industry has developed around "space tech", with a myriad of companies to choose from.

Seraphim Space Investment Trust is issuing up to £350m of new shares so more investors can invest in this popular trust which currently trades at a 57% premium. Seraphim's shares have risen in value by more than 260% over the past year¹, and the capital it raises will be deployed across both current and new holdings.

Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC)

Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC), said: "The space technology industry is developing at pace, and we are still at the beginning of the journey. We've seen technology to help launch rockets and manage space missions and the development of sophisticated observation systems to monitor the environment, climate impact and energy efficiency. There are firms planning and managing satellite deployment and offering data storage capacity in space.

"There's a range of options for investors who want exposure to space tech, from Seraphim Space's portfolio of unquoted space tech businesses to investment trusts offering exposure to the final frontier. Investment trusts' structure is particularly suitable for the innovative fast-growing private companies that dominate the space sector and this is the only way private investors can access these opportunities."

Investment trusts with exposure to space (excludes Seraphim Space Investment Trust)

^{Source: theaic.co.uk / Morningstar / companies. Excludes Seraphim Space. Molten Ventures has around 7% of its portfolio invested in ICEYE, Isar Aerospace and SatVu. Table may not be exhaustive.}

Mark Boggett, CEO of Seraphim Space Investment Trust, said: "Space has moved decisively from being a speculative frontier to a strategically vital, revenue generating investment theme. What we are seeing today is the convergence of structural drivers: rising defence and sovereign demand, accelerating commercial adoption and rapidly shortening procurement cycles, all of which are fundamentally changing how and where value is created in the sector.

"Our portfolio companies are increasingly at the centre of this shift, delivering tangible contract wins and strong revenue growth rather than long dated promises. On average, our top ten holdings grew revenues by an average of 79% last year, and we are seeing continued valuation progression as these businesses execute at pace.

"For example, over the past twelve months ICEYE, our largest holding by value, has secured a series of nine-figure contracts with European nation states, culminating recently in the announcement of a landmark €1.7bn contract award via its joint venture with Rheinmetall for the German armed forces."

James Budden, Head of Global Marketing at Baillie Gifford, which runs numerous trusts investing in space, including Scottish Mortgage, Baillie Gifford US Growth, Edinburgh Worldwide and Schiehallion Fund, said: "For the first time in history, living beyond our planet feels within reach. SpaceX is central to this opportunity, with three key competitive advantages: leadership in reusability, vertical integration, and a broad growth strategy. Reusability places it years ahead of others who are still transitioning from traditional engines. The company's vertical integration allows superior cost and schedule control, and its innovative culture and flat management structure attracts top engineering talent.

"Its Starlink project has millions of subscribers, with fast satellite deployment also making SpaceX a disruptor in telecoms and internet services. Here it has surpassed competitors with its lower latency, improved user experience, and attractive economics."

Other investment trusts with exposure to space tech

Molten Ventures, the £1.5bn investment trust in the AIC's Growth Capital sector, has investments in ICEYE, Isar Aerospace and SatVu. These holdings make up around 7% of its portfolio.

George Chalmers, Partner at Molten Ventures, said: "Space is becoming part of the world's critical infrastructure - no longer a distant frontier but a foundational layer for how economies see, sense, and connect. What draws us to companies like SatVu, ICEYE, and Isar Aerospace is the practicality of their ambition. They're solving real problems - observing activity on Earth, tracking a changing climate, and maintaining independent access to orbit.

"Europe's edge lies in its deep engineering talent, supportive funding environment, and a growing imperative for autonomy across launch, satellite, and data infrastructure. Investing in space today is investing in the systems that will anchor security, resilience, and intelligence for decades to come."

RIT Capital Partners has SpaceX among its top ten individual portfolio holdings, and SpaceX is its largest private direct investment.

Maggie Fanari, Chief Executive Officer of J. Rothschild Capital Management, investment manager for RIT Capital Partners, said: "We believe SpaceX is one of the world's most innovative companies, revolutionising space technology, while Starlink is transforming the broadband and aviation industries. Both businesses are category leaders, well positioned for continued global expansion and long-term growth. RIT gives investors access to private companies such as SpaceX that are otherwise not available in public markets."

Benefits of investment trust structure

Mark Boggett, CEO of Seraphim Space Investment Trust, said: "One of the key advantages of the investment trust structure is that it enables public market investors to access both public and private growth-stage space technology companies through a single listed vehicle. It provides exposure to high quality private businesses that would typically be inaccessible to public investors, alongside selected listed companies operating in the same thematic space.

"This is especially powerful in a sector like space technology, where much of the most significant value creation occurs in companies that are still private but already demonstrating real commercial traction. The structure allows investors to participate in that growth phase, while also maintaining exposure as companies transition into public markets. ICEYE is a clear example of this approach. We invested early and have supported the business as it has scaled rapidly, secured major government customers and built a resilient commercial model. Today, ICEYE has developed into a multi-billion dollar company, demonstrating how backing category defining businesses at this stage can translate into compelling long-term value creation.

"We are seeing similar progress elsewhere in the portfolio. HawkEye 360, another growth-stage business we backed privately, has now announced its intention to pursue an IPO. This highlights how the structure enables investors not only to access companies before they list, but also to remain invested as they mature into publicly listed leaders."

Notes to editors

1. Source: theaic.co.uk / Morningstar. Share price total return to 05/05/26.