The world’s first investment trust focused on space technology is set to float in London, giving everyday investors the opportunity to tap into what is predicted to become a trillion-dollar market.
Seraphim Space Investment Trust will invest in a portfolio of early and growth stage space tech companies.
The newly-established trust will be managed by Seraphim Space, which runs with the strap-line on its website of ‘science fiction to science fact,’ and is targeting an ambitious total annual investment return of 20 per cent.
Seraphim claims to be the world’s number one space tech investor and boasts a large portfolio of more than 50 space-related companies.
‘Science fact’: The new IPO will give the public a way of investing in space with a diverse range of companies
The new trust will acquire a portfolio of 19 seed assets from the Seraphim Space Fund.
This already includes stakes in a handful of unicorns – a company valued at more than $1billion – such as Arqit, Spire Global and AST & Science.
‘There is nothing short of an industrial revolution underway in the space sector,’ Will Whitehorn, chair designate of the trust and former Virgin Galactic boss said.
‘Space Tech is forecast to be a multi-decade, trillion-dollar investment market that has not previously been available through listed opportunities.
‘We are excited to offer investors access to a diversified portfolio of some of the sector’s highest growth-potential companies.’
Morgan Stanley estimates the global space industry could generate revenue of more than $1trillion or more in 2040, up from $350billion currently.
What is it investing in?
It will initially have 19 seed assets, including:
AST & Science, a satellite broadband specialist listed on the Nasdaq. It is building a network of satellites, known as a constellation, that is designed to deliver broadband from space directly to smartphones.
British start-up Arqit, an encryption specialist and offers companies new technology to avoid cyber attacks. It has been backed by funding from the Government and plans to merge with a special acquisition company.
Spire Global has built a network of nano-satellites that orbit just above the Earth’s atmosphere to collect data. In March it also announced plans to go public through a merger with a special acquisition company.
Despite the global economic turmoil of the last year, 2020 saw the biggest private investment in space to date, and this year is likely to follow suit.
However, space-related investments are still at an early stage and will need multiple funding rounds before reaching maturity.
This makes it a high risk proposition but the investment trust structure is well-suited to the sector as it allows for a patient investment approach, Mick Gilligan, partner at investment house Killik & Co said.
‘It’s one for investors with high risk appetite and should really only constitute a very small part of an overall portfolio.
‘Seraphim, if it does successfully IPO, is likely to return on several occasions for more capital so there are likely to be more opportunities to invest in new shares further down the line,’ he added.
The Initial Public Offering will see shares issued at 100p each and it says a prospectus will be published within weeks.
There have been a series of high-profile IPOs in the past few months, including PensionBee, Deliveroo and artificial intelligence company Darktrace.
IPOs give everyday investors the opportunity to purchase shares of companies when they go public.
There has been a rush to invest in the space industry in recent years as Elon Musk, Jeff Bezos and Sir Richard Branson compete to be the first to offer human spaceflights.
Attention has also turned to the satellite industry.
Musk’s SpaceX – which high profile fund Scottish Mortgage Trust has a stake in – and UK-based OneWeb have recently launched small satellites into low Earth orbit.
‘The data captured by satellites can help us monitor and mitigate the effects of climate change and drive a more sustainable future,’ Seraphim chief executive Mark Boggett said.
‘Likewise, it is the connectivity delivered from space that will enable the three billion people still without internet access to get online.’
Boggett launched the fund in 2014 with colleagues from YFM Equity Partners, and since then has raised £70million from investors including the British Business Bank and Airbus.
The new investment trust has already received the backing of government as it ramps up investment in the sector in a bid to increase its share of the market.
‘This is a very exciting development for the space sector in the UK and around the world.
‘Seraphim Capital, with whom the Department for International Trade has long worked with, has already led the way in helping the sector access capital finance that contributes to the critical commercialisation of space technology and services,’ Lord Grimstone, minister for investment said.
Tips to Find Low Priced Luxury Holiday Package Deals Fast
For most families, it has already been a common practice to spend the Holiday season in a foreign location. This is caused by the aviation market changes which have given a lot of benefits for people who travel a lot. Airfares going to different tourist destinations are becoming more inexpensive. What does this mean? If there is a perfect time to purchase luxury holiday package deals, now it the right time! Based on the market trend nowadays, you can save both money and time when you go for a luxury holiday. There are countless offers that combine travel and accommodation in one package which is a lot cheaper than getting separate deals. Aside from that, it is also risky to individually book the services that you need for the vacation. You might end up missing out on some important details of the trip. Unlike when you take advantage of luxury holiday package deals, you can be sure that everything is organized meticulously and according to what you really need. Nonetheless, you would still need to carefully select the package that would fit your needs. Review the following tips in getting packages that are reasonably priced. · Normally, luxury tour packages include accommodation, flight travel and transportation to individual tourist destinations. It would be best to choose the complete package so you won’t have to worry about other vacation elements. In addition to that, these are the packages that have the biggest discounts. · You can get big mark down prices, if you will purchase more packages. It is not a bad idea to share the wonderful moment with your loved ones. By doing so, you would not only enjoy, you will also save more money. You can even use your savings for other activities on your vacation. · It would be best to know how much you are willing to pay for the luxury tour packages. You can already work around your budget. You have to stick to your budget. If not, you might end up spending a lot and you will be left with less money for your vacation. · Prices may vary depending on the destination of the tour. You can do a research about places that are attractive yet inexpensive. There are thousands of destinations and you just have to choose wisely. · There are packages that include recreational activities. This means that you are paying for all the activities when you purchase these packages. The right thing to do is to make sure that the activities that are included would be the ones that you really enjoy. There is no sense in paying for activities that will not really make your vacation memorable. If you are going with friends, you should also consider their preferences so that you can be sure that everyone will enjoy the trip. There are other ways on how you can be sure that you are getting the best deal for your luxury holiday vacation. No matter how you choose to do it, you have to get adequate information about the packages. This will help you determine whether it is worth the price.