Seraphim Space Investment Trust (LSE: SSIT)

Last close As at 20/06/2024

GBP0.63

0.00 (0.00%)

Market capitalisation

149m

Edison Investment Research is terminating coverage on Seraphim Space Investment Trust (SSIT). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.

Equity proposition

Below, we highlight the important elements of the trust’s investment story.

#1 SSIT is a compelling pure play on the spacetech theme

The trust offers a rare opportunity to invest in a portfolio exclusively composed of early-stage and growth-stage spacetech businesses, representing a viable alternative to ETFs focused on listed large-caps in the aerospace and defence sector and space-enabling technologies which offer only partial exposure to the theme. Seraphim Space is seeking high-growth businesses that are addressing very large market opportunities that are likely to persist for many decades, providing a long runway of growth and powerful long-term secular tailwinds.

#2 Spacetech’s lift-off moment may be now

Commercial space technology is gathering pace, driven by a massive decline in the cost of manufacturing and putting satellites into orbit. This is coupled with growing demand for earth observation from space in end-markets like defence, climate change and insurance, with further demand drivers for spacetech services including connectivity and mobility.

#3 Seraphim Space is made up of pioneers in commercial space technology investments

Seraphim Space is a pioneer in spacetech investments (with more than 100 investments across its public and private portfolios) that has built deep knowledge and deal origination networks. Its current team offers a compelling combination of long-term private equity investment expertise with extensive technical and relevant academic and commercial spacetech experience. It is the go-to partner for both spacetech businesses seeking funding and investors searching the sector for attractive private companies to invest in.

#4 SSIT offers a diverse portfolio of spacetech businesses

SSIT’s top 10 holdings, which make up the vast majority of the current portfolio value, represent a diverse set of business models. The largest part of the portfolio value consists of companies operating their own satellite constellations. Several holdings do not operate their own constellations, but provide a product based on a combination of datasets obtained from third-party satellites and terrestrial data and offer these to specific sectors (such as agriculture, construction or oil & gas). Finally, some of SSIT’s portfolio companies provide in-orbit services, such as orbital transportation, as well as satellite maintenance and removal.

#5 Spacetech is experiencing sustained investor interest

While capital deployed by venture capital and growth investors into spacetech has declined from the 2021 peak, investor interest in the theme remains high. According to the Seraphim Space index, investments in nextgen spacetech businesses remained resilient last year at US$6.8bn, broadly in line with 2022 (compared to a 35% decline across the broader VC market). The high investor interest is for instance illustrated by a funding round of Hawkeye 360 (a portfolio company of the Seraphim Space Investment Trust) which was led by funds and accounts managed by BlackRock. A wide range of investors have recently made forays into spacetech investments, including sovereign wealth funds and private equity investors.

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Spacecraft Launch Into Space. Elements of this image furnished by

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 4.3 21.3 65.6
Relative 2.4 12.0 52.6
52 week high/low 71.0p/26.1p

Overview

Edison Investment Research is terminating coverage on MotorK (MTRK) and Seraphim Space Investment Trust (SSIT). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.

Previously published reports can still be accessed via our website.

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