TAMPA, Fla. – Seraphim Capital plans to publicly trade its stakes in space technology startups through a mutual fund.
The Seraphim Space Investment Trust will eventually include betting in 19 international startups, including satellite data specialist Spire Global, quantum encryption company Arqit and space-based cellular network operator AST Space Mobile.
These three recently received more than $ 1 billion in valuations on mergers with special purpose vehicles (SPACs), investment vehicles that provide an alternative route to public markets.
AST space vehicle (ASTS) went public in April following the completion of the SPAC merger. Spire is expected to follow this summer and then Arqit in the third quarter of 2021.
Seraphim announced that it will publish a prospectus in the coming weeks with detailed plans for an initial public offering (IPO) on the London Stock Exchange.
When it announced it would be trading in the public market on June 11, it announced that its space technology fund currently has an internal rate of return (IRR) of 31%.
Seraphim Space Investment Trust aims for an annualized return on net asset value (NAV) of at least 20% over the long term.
Will Whitehorn, former president of space tourism company Virgin Galactic, who will chair the trust, said the plans would open space beyond billionaire entrepreneurs and other private investors.
“Space tech is predicted to be a decade-long trillion dollar investment market that was not previously available through publicly traded opportunities,” Whitehorn said in a statement.
“We are pleased to offer investors access to a diversified portfolio of some of the companies with the highest growth potential in the industry.
The definition of Seraphim for aerospace technology companies includes those who rely on space-based connectivity or precision, navigation and timing signals.
This also includes those with technologies or services that already address the space sector, are originally derived from it or potentially benefit from it. That covers the growing market for Electric Vertical Takeoff and Landing (eVTOL) businesses.
The trust will initially skip Spire, Arqit, earth imagery operator Iceye, and space logistics company D-orbit when it acquires Seraphim’s 19-stake portfolio.
These companies are currently subject to corporate activities that can have a material impact on the value of these investments.
The Trust plans to acquire the remainder or some of the withheld investments before the end of this year until the business of the company is completed or confirmed that it will not be completed any time soon.
About £ 70 million ($ 99 million) in value could be added if the trust acquires the rest of the portfolio, Seraphim said based on Aug.
Deutsche Bank and JP Morgan are working on the IPO, the previous reports said could raise around $ 355 million.