Strong NAV growth underway, with further upside expected

Seraphim Space Investment Trust (SSIT) has reported strong NAV growth, mainly from higher valuations in its main holdings and better operational performance. The manager remains very excited about SSIT’s future prospects, expecting further NAV gains as more contracts turn into revenue and momentum increases.

SpaceTech is now seen as vital national infrastructure, with rising defence budgets and quicker procurement, especially in Europe, driving demand in areas where SSIT is well positioned. This has led to larger contracts, improved revenue visibility, and clearer paths to profitability for portfolio companies.

The manager believes SSIT’s current valuation does not fully reflect the strength or lasting nature of these growth trends, and sees the long-term potential as underappreciated by the market.

On 16 April 2026, SSIT’s board announced a possible C-share offering to raise up to £350m. This offer is open to both institutional and retail investors (via Retail Book), allowing the trust to raise new capital without causing cash drag for current shareholders while the funds are invested.

Issuing new shares should benefit existing shareholders by improving market liquidity and lowering the trust’s expense ratio, as fixed costs are spread over a larger asset base. It should also reduce the blended management fee, which is 1.25% on net assets up to £300m and 1% above that.

The world’s first listed SpaceTech fund

A diversified international portfolio of mainly growth-stage, privately funded SpaceTech businesses. These companies are leaders in their fields with first-mover advantages in areas like global security, climate and sustainability, connectivity, autonomous mobility, telecommunications, and smart cities.

At a glance

Share price and premium/(discount)

SSIT has seen a significant improvement in its rating during the last year, and particularly during the last six months, as greater geopolitical tensions – in particular, the uncertainty around US commitments to the NATO alliance and their support for Ukraine – have created a massive impetus for European nations and other non-US NATO allies to invest heavily in defence. At the same time, the market has recognised the importance of SpaceTech in defence applications.

Performance over five years

SSIT generated a 40.8% increase in NAV over the course of 2025. The largest contributor to this growth was unrealised fair value gains within its portfolio, supported by defence and geopolitical trends. So far this year, SSIT has announced material valuation increases for five of its largest holdings ICEYE, ALL.SPACE, D-Orbit, HawkEye360 and, more recently Xona. The drivers for these uplifts are discussed in more detail in the top 10 holdings section on pages 9-13.

Fund profile

More information is available on the trust’s website investors.seraphim.vc

SSIT aims for long-term capital growth by investing in a diverse global portfolio of mainly growth-stage, privately financed SpaceTech companies. These are businesses that depend on space-based connectivity or navigation signals, or whose technology benefits the space sector.

The portfolio focuses on category leaders with global growth potential, often enjoying first-mover advantages in areas like global security, cybersecurity, food security, and climate change.

Launched in July 2021, SSIT met its fundraising goal and began with around £178.4m in cash. By December 2025, total assets had grown to £337.5m. SSIT’s Alternative Investment Fund Manager is Seraphim Space Manager LLP.

Measuring success

SSIT aims for annualised NAV returns of 20% over the long term. While it has no official benchmark, for comparison in this note we have used the MSCI World Aerospace and Defence Index.

Manager’s view

Just scratching the surface of NAV growth

Mark Boggett says “we are just scratching the surface of SSIT’s NAV growth potential”

Mark Boggett, the CEO of SSIT’s investment manager, is very clear about the growth outlook for dual-use SpaceTech and SSIT. He believes that despite recent strong results and uplifts such as the 167% valuation increase for Xona, SSIT’s NAV growth potential is only beginning to be realised. While ICEYE is currently leading, Mark sees all portfolio companies having similar growth potential.

He expects NAV to keep rising quarter by quarter through 2026 and beyond, as new contracts turn into revenue and portfolio companies win more business at a faster pace. Given these strong growth drivers, Mark believes that even with SSIT trading close to its asset value, the shares still offer very good value.

SpaceTech recognised as critical national infrastructure

A growing recognition of SpaceTech as critical national infrastructure

The manager believes the SpaceTech sector has entered a new phase, driven by higher defence spending and recognition of SpaceTech as vital national infrastructure. Rising geopolitical tensions and the need for sovereign capability are shifting national priorities, speeding up procurement across the sector.

SpaceTech’s importance is increasingly visible in new contract wins

This shift is already leading to real commercial results. Companies in the portfolio are winning bigger and earlier contracts from government customers, as procurement increasingly favours proven commercial suppliers. This trend is not just in the US, but also in Europe, Japan, and other allied countries, which are increasing investment to fill capability gaps and reduce reliance on outside providers.

Improved economics mean more nations can procure their own satellite constellations

NATO members are now committing to much higher defence spending. US threats to withdraw support from Ukraine, including Elon Musk’s threat to cut off Starlink, have exposed NATO’s reliance on US backing. Lower launch and hardware costs, thanks to smaller and cheaper satellites using off-the-shelf components, have changed the economics. Countries that could not previously afford space hardware can now buy their own satellites. Last year, Greece, Finland, Poland, and Switzerland all purchased satellites, which has benefited ICEYE.

SSIT’s manager highlights that ICEYE secured four contracts last year with European governments, each worth over £100m. These include a €1.7bn contract with the German military through a joint venture with Rheinmetall, completed in under six months due to urgent demand. Other deals include a €200m contract with Poland’s Ministry of National Defence for three SAR satellites and related infrastructure, a $168m contract with Finland’s defence forces for three satellites, and a SEK1.3bn agreement with the Swedish armed forces for 10 satellites and data services.

Capital markets are supporting SpaceTech

$12.4bn invested in SpaceTech over 2025

Capital markets are recovering, with SpaceTech funding hitting a record $12.4bn globally in 2025. This surpasses previous highs and shows the sector’s resilience compared to wider venture capital markets. The funding landscape has also improved, with more growth-stage rounds and fewer large, concentrated deals, which the manager sees as supporting a healthier investment cycle.

There is growing anticipation around SpaceX’s expected IPO, predicted to be the largest ever. This comes alongside renewed interest in space exploration, fuelled by the recent success of NASA’s Artemis mission. The manager notes strong share price gains at Spire Global and Planet Labs PBC, up 164% and 68% year-to-date, respectively.

Strong operational progress is driving valuation gains

Private portfolio valued at 200% of cost

SSIT’s portfolio is showing strong operational progress and valuation gains, with key holdings like ICEYE, ALL.SPACE, HawkEye 360, D-Orbit, and Xona driving the private portfolio to over 200% of its original cost for the first time. Many companies are now seeing solid revenue growth, and most management teams are aiming for EBITDA profitability within the next 12 to 24 months.

SSIT’s manager expects these positive trends to continue. ICEYE, the largest holding, more than doubled its 2025 revenues to €250m and generated over €100m in EBITDA. ICEYE’s management also aims to exceed €1bn in revenue by 2027.

HawkEye 360 is another highlight, having published a prospectus for its planned IPO on 27 April 2026. If priced at the midpoint of its $24–$26 range, the IPO would value the company at $2.36bn, adding a 4.66p per share uplift to SSIT’s NAV.

Although timing is uncertain, SSIT’s manager believes other private holdings are equally promising and expects them to achieve similar growth over time.

The opportunity in AI

SSIT’s manager points to the merging of AI and space infrastructure, highlighting xAI’s integration into SpaceX as a sign of future trends. The rapid growth of AI models is driving huge demand for computing power and infrastructure, with companies like NVIDIA leading this expansion. While better chips and model designs have enabled progress, they also increase the need for power, cooling, and physical infrastructure.

Data centres in space?

Elon Musk believes the main limit to future AI development will be energy, not algorithms. As AI models grow, their power use rises, raising concerns about whether Western power grids can keep up. Musk suggests that placing data centres in space could solve this, as they could use unlimited solar energy and avoid land and grid restrictions. In contrast, China is currently better placed for energy due to its use of fossil fuels and rapid nuclear growth. This suggests that future AI leadership may rely as much on energy access as on technology.

SpaceX is well placed to lead in this area, having already launched thousands of satellites and shown it can build and run large orbital networks. Musk’s next goal is to move from communication satellites to space-based data centres that can be expanded and connected worldwide.

SSIT’s manager sees wider effects for the sector. As demand for computing power grows, AI companies will need to think beyond chips and software, considering access to energy and infrastructure, possibly including space-based options, to stay competitive. Although still new, the combination of AI, energy, and space infrastructure highlights the long-term importance of SpaceTech.

The manager points out that this strategy is being driven by a leading entrepreneur in the sector. While there are risks, it is a credible approach. SSIT’s portfolio includes companies set to benefit from these trends. The manager also notes that portfolio companies can gain by using AI in their own products. HawkEye 360, Tomorrow.io, and LeoLabs are highlighted as AI-focused businesses using low-cost infrastructure to extract valuable insights from their data.

Despite the strength of the opportunity set, capital discipline is still key

The manager stresses the importance of capital discipline. SSIT has stayed liquid without raising new equity, relying on selective investments and recycling capital from realised positions. This lets the trust support its top opportunities while keeping its balance sheet flexible.

SSIT’s manager has a strong pipeline of opportunities, both from existing holdings and new companies in the SpaceTech sector. With the trust now trading at around a 34% premium to NAV, thanks to strong performance and rising interest in dual-use SpaceTech, the board has published a circular about a possible C-share offering that could raise up to £350m. The issue will include both a placing and a retail offer (click here to read more about the retail offer).

Strong growth outlook driven by defence usage

The manager expects ongoing strong demand, especially in defence, with Europe increasing investment from a low base. More satellite launches and better revisit rates should create new commercial opportunities, as large companies and consultancies use more space-derived data in their decisions.

SSIT is well positioned at the intersection of defence, data, and space infrastructure

We believe SSIT is well placed at the crossroads of defence, data, and space infrastructure. Its portfolio is increasingly focused on essential applications, and the environment for funding and exits is improving. As a result, we see a positive outlook for both portfolio performance and valuation growth.

Asset allocation

At 31 December 2025, SSIT held 23 direct investments valued at £331.6m, up from £259.8m at 30 June 2025, due to valuation gains and some follow-on investments. The portfolio remains concentrated, with the top 10 holdings making up 91.9% of NAV, compared to 87.1% at 30 September 2025. Despite this, SSIT still provides exposure across a wide range of SpaceTech subsectors.

The manager emphasises a focus on leading companies with strong growth prospects, selecting investments for quality and leadership rather than taking a broad approach. Diversifying across subsectors and countries helps manage risk.

Platform businesses continue to dominate, reflecting a strategy that targets companies building space-based infrastructure with strong operating leverage, such as ICEYE’s SAR constellation and Xona’s LEO PNT network. The portfolio also includes areas like downlink, launch, analytics, and emerging “beyond Earth” applications. The allocation to platform businesses fell slightly from 62% in September to 60% in December, mainly due to strong performance from these companies, especially ICEYE.

Figure 1: SSIT portfolio by sub-sector as at 31 December 2025

Figure 2: SSIT portfolio by geography as at 31 December 2025

Figure 2 shows the portfolio’s geographical split as at 31 December 2025, confirming good diversification without heavy reliance on any single region. Changes are minor: the UK share is up by 3 percentage points, while Europe and the rest of the world have each fallen by 1 percentage point.

Recent investment and exit activity

£2.9m invested in follow-ons

SSIT invested £2.9m in follow-on funding during the six months to 31 December 2025, with £2.6m going to ALL.SPACE, £0.3m to Quadsat, and £0.1m to Taranis. These follow-ons all took place in the first quarter, and there have been no new investments so far this financial year.

Full exits of listed holdings – Arqit and Spire Global

As noted previously, SSIT sold its Arqit holding after a share price rally in October 2025, raising £3.3m, which was 15% of the original sterling cost. The Spire Global holding was also fully sold in October 2025 for £2.9m, or 29% of its initial cost.

Portfolio cash runway and SSIT cash burn

Figures 3 and 4 show SSIT’s portfolio split by funding needs until cash-flow break-even, based on fair value and number of companies as at 31 December 2025. The data uses the latest projections from the portfolio companies’ management teams at that time.

Figure 3: SSIT portfolio by funding duration as at 31 December 2025 (fair value)

Figure 4: SSIT portfolio by funding duration at 31 December 2025 (number of co.s)

At 31 December 2025, about 77% of SSIT’s portfolio had a strong cash position, with 70% fully funded and another 7% funded for at least 12 months. The company held £22.1m in cash reserves, up from £19.4m at the end of September, plus potential liquidity of £3.9m from its three listed holdings, equal to 1.2% of NAV. SSIT remains disciplined in its spending, with follow-on investments made selectively to help manage funding risks.

$2.2bn was raised by SSIT’s portfolio companies during H1 FY2026.

During the half year to 31 December 2025, SSIT’s portfolio companies raised around $2.2bn, already surpassing the $2.1bn raised in the whole of FY2025. Over $475m of this came from private companies, with the rest from listed holdings. Of the eight private companies that raised funds, about 75% had rounds led or strongly supported by outside investors, showing continued interest in the portfolio.

Several of SSIT’s main holdings are showing strong operational progress. In the year to 31 December 2025, the top 10 holdings grew revenues by an average of 79%, with better revenue visibility and clearer routes to EBITDA profitability.

85% of SSIT’s portfolio value, including seven of its top 10 holdings, are projecting EBITDA profitability in 2026.

Management teams representing over 85% of SSIT’s portfolio value, including seven of the top 10 holdings, expect to reach EBITDA profitability in 2026. SSIT is also receiving income, and portfolio companies are raising capital at reasonable valuations, so funding needs across the portfolio appear manageable.

The trust’s balance sheet remains liquid, helped by disciplined recycling of capital, selective follow-on investments, and exits from listed holdings like Arqit and Spire, despite no new equity issuance.

Maturity profile

SSIT is a growth capital fund focused on businesses that have moved beyond the early seed and Series A stages. It invests in more mature companies that have commercialised or are close to commercialising their products and are working towards profitability.

SSIT benefits from Seraphim’s venture capital arm, which helps filter out early-stage start-ups with higher execution risk. Most of SSIT’s investments are in the later stages of funding, with about 70% in Series C or Series D rounds, which are typically the last private funding rounds before a possible IPO.

Top holdings

Figure 5 shows SSIT’s top 10 holdings as at 31 December 2025 and how these have changed since 30 September 2025, the last time we reported. All holdings listed were also in the previous top 10, with only minor changes in their rankings.

Figure 5: SSIT 10-largest holdings as at 31 December 2025

The top four holdings – ICEYE, ALL.SPACE, D-Orbit and HawkEye 360 – all had significant valuation increases in the last six months, mainly due to completed financing rounds or corporate activity. These increases totalled £69m, which led SSIT’s board to announce the change on 16 February 2026, ahead of interim results on 5 March 2026.

We discuss some of these holdings in more detail below, with further information available in our previous notes on page 20.

ICEYE – valuation uplift supported by strong financial delivery and defence-driven backlog

ICEYE (iceye.com) has made significant progress in both its commercial standing and valuation over the past year, driven by major defence contract wins and stronger financial results. The most notable is a €1.7bn multi-year contract with the German government, secured in December 2025 through a joint venture with Rheinmetall. This is one of the largest contracts ever awarded to a commercial SAR provider and strengthens ICEYE’s role in Europe’s defence-focused space sector.

The company’s strategic importance is now matched by its financial performance. ICEYE’s unaudited FY2025 results show revenue above €250m, EBITDA over €100m, and operating cash generation of more than €130m, with a cash balance exceeding €350m. It has also built a contracted backlog of €1.5bn, giving strong visibility on future revenue and reflecting steady demand, mainly from long-term government intelligence needs rather than short-term commercial spending.

In response, SSIT has returned to valuing ICEYE based on a group of 15 similar public companies, applying a lower EV/sales multiple to account for ICEYE’s private status and limited liquidity. The manager believes this approach is now justified given ICEYE’s growing scale, profitability, and reliable earnings, especially after the German government contract and rising order book.

Series of significant contract wins has continued into 2026

In December, ICEYE completed a €150m Series E funding round led by General Catalyst to support further expansion of its satellite constellation and manufacturing. This follows an October agreement with IHI Corporation in Japan.

ICEYE has expanded its international presence with a $168m contract with the Finnish Defence Forces and, in January 2026, a new contract with the Swedish Armed Forces, strengthening its position in NATO-aligned markets. SSIT’s manager sees ICEYE as a key beneficiary of growing global demand for space-based intelligence, especially as European governments aim to match US and Chinese capabilities. With a rising order book, broader geographic reach, and better financial visibility, ICEYE is well placed for further growth and supports a significant part of SSIT’s NAV growth mentioned on page 14.

The manager also sees strong potential for ICEYE if it achieves its IPO goals. Mark notes that Planet Labs, a similar satellite operator listed on the NYSE and valued at around $10bn, has lower revenues than ICEYE and is not yet profitable.

ALL.SPACE – moving closer to operational deployment as defence use cases firms up

SSIT’s manager notes that ALL.SPACE (all.space) is moving from development to early deployment, with recent milestones showing growing interest in its multi-orbit connectivity technology, especially for defence. A major step is the certification of ALL.SPACE’s new tactical terminal on the SES O3b mPOWER network, in partnership with SES Space & Defense. This is the first multi-orbit, electronically steered terminal certified for the network, allowing simultaneous, secure connections across geosynchronous (GEO) and medium Earth orbit (MEO) from one platform. The certification means the terminal can now support secure government communications programmes, showing it is ready for real-world use.

Earlier, the Hydra MAX terminal reached Technology Readiness Level 9 after successful US Army trials, confirming the technology’s reliability in operational settings and its readiness for wider deployment. ALL.SPACE’s “one antenna to connect to any satellite” solution supports seamless switching between satellite constellations and orbits, which matches the needs of modern defence systems for resilient communications. Its electronically steered antenna, with no moving parts, is built for reliability in demanding land, sea, and mobile command environments.

SSIT’s manager says these achievements show both technical and commercial progress and stronger alignment with major defence procurement plans. As adoption grows, the manager believes ALL.SPACE is well placed to turn this momentum into repeat orders and broader use.

ALL.SPACE’s multi-orbit connectivity technology could become key for next-generation space communications. As a result, its valuation has risen, with fair value now about 1.8 times the original investment.

D-Orbit – scaling space logistics platform with fresh capital and expanding partnerships

D-Orbit (dorbit.space) continues to strengthen its role as a key provider of in-orbit logistics and satellite delivery services. The company raised €110m in its Series D funding round in January 2026, including $53m from lead investor Azimut, Italy’s largest independent asset manager. This funding increased D-Orbit’s valuation to about 3.6 times SSIT’s original investment. The new capital will be used to expand manufacturing, pursue acquisitions, and develop in-space computing. SSIT’s manager believes this funding will help D-Orbit scale as demand for orbital services rises.

Operationally, D-Orbit maintains strong execution, recently launching two ION orbital transfer vehicles on SpaceX’s Transporter-15 mission, marking its 200th payload deployment. The ION platform is central to D-Orbit’s strategy, supporting satellite deployment, hosted payloads, and edge computing in orbit.

D-Orbit is also growing internationally, signing a cooperation agreement with ELT Group to develop joint space capabilities in line with Saudi Arabia’s Vision 2030. This reflects a wider industry shift as governments focus on domestic space infrastructure. SSIT’s manager believes D-Orbit’s expanding ION-based network positions it well to benefit from the growth in satellite constellations and the move towards flexible, service-based orbital solutions.

HawkEye 360 – continuing to scale its RF intelligence platform as demand accelerates

HawkEye 360 (he360.com) operates the world’s largest commercial radio frequency (RF) intelligence satellite network. Its system can detect and locate signals from radios, radars, and other sources from space, which is valuable for defence and security users who need to track activity that traditional imaging cannot see. SSIT’s manager notes the company has shown strong commercial and operational progress, strengthening its position as a top provider of space-based RF intelligence.

In December, the company completed a $150m Series E funding round, combining equity and debt from both new and existing investors. This raised HawkEye 360’s valuation, increasing SSIT’s carrying value for the investment to about 1.8 times its cost.

Funds from the round were used to acquire and integrate Innovative Signal Analysis, adding advanced signal-processing and strengthening HawkEye 360’s analytics platform. SSIT’s manager expects this will speed up constellation expansion and new data product development. Cluster 12 became fully operational in September, followed by Cluster 13’s launch in January, improving coverage and revisit rates. More clusters are under contract.

In December, HawkEye 360 also secured a multi-year data agreement worth over $100m with a strategic international partner, reflecting growing defence reliance on commercial space-based RF intelligence and providing more recurring revenue. The US Navy also renewed a contract worth nearly $98.8m for a fourth year, focused on maritime awareness in the Indo-Pacific.

SSIT’s manager believes HawkEye 360 is well placed to benefit from higher defence spending and the shift towards multisource intelligence. As intelligence, surveillance, and reconnaissance (ISR) needs expand beyond imagery to signals intelligence, HawkEye 360’s unique data and analytics should support further growth. The main focus is scaling the constellation and turning strong demand into steady, recurring revenue.

On 10 April 2026, HawkEye 360 filed for an IPO on the New York Stock Exchange under the ticker “HAWK”, followed by an amended registration statement on 27 April (click here to read the prospectus). At the midpoint of the $24–$26 offer range, HawkEye 360 would be valued at about $2.36bn, rising to $2.76bn after a planned $400m capital raise. For SSIT, which valued its holding at 10.1% of NAV at 31 December 2025, this pricing suggests an uplift of about £11.1m, or 4.66p per share, around 3.3% of NAV.

If the IPO goes ahead, SSIT’s stake will be locked up for six months. While SSIT aims to realise long-term value by exiting investments over time, it can hold shares after IPO and sell when conditions are right.

Although the IPO timeline is not yet set, the planned listing shows the maturity of the portfolio and highlights the underlying value in SSIT’s holdings, which may not be fully reflected in its current share price.

LeoLabs – building momentum as commercial SSA becomes increasingly important

LeoLabs (leolabs.space) continues to strengthen its role in space situational awareness (SSA) as orbital congestion grows and governments seek better oversight of space assets. Its ground-based radar network can track objects as small as 2cm in low earth orbit, supporting collision avoidance and broader space monitoring.

In 2025, LeoLabs secured over $60m in contracts, mainly from rising US government demand. This reflects a wider move towards using commercial providers for SSA data, allowing governments to boost their own capabilities with scalable, real-time solutions.

The company is expanding its radar network, with new systems in development, including the first “Scout” radar in Hawaii (due in 2026) and a “Seeker” radar planned for the Indo-Pacific. These additions will improve coverage and tracking accuracy in key regions. LeoLabs has also won contracts to integrate its data into US government systems, including the US Space Force’s Unified Data Library, embedding its services further into national space operations.

SSIT’s manager notes that as more satellites are launched, demand for reliable tracking and collision avoidance will rise, especially as defence agencies focus more on space awareness. LeoLabs is well placed to benefit from these trends, with its proprietary radar and scalable data products providing a strong competitive edge, though ongoing investment will be needed for global coverage. The main challenge now is turning strong government demand into long-term, recurring revenue. The manager also highlights the ‘Golden Dome’ in the US as a significant opportunity for LeoLabs in the coming year.

Performance

First half of 2026 financial year (H1 FY26)

As of 31 December 2025, SSIT’s NAV was £337.5m (142.30p per share), up 20.1% from £281.1m (118.52p per share) at 30 June 2025. This marks a 40.8% increase over 2025, with NAV at £239.7m (101.04p per share) at the end of 2024.

The main driver of this growth was unrealised fair value gains in the portfolio, totalling £101.4m (42.74p per share), helped by defence and geopolitical trends. These gains outweighed realised losses of £26.3m (11.09p per share) from the sale of SSIT’s listed holdings in Arqit and Spire, which raised £3.3m and £2.9m in October 2025. The sales are discussed in our previous note.

Material valuation increases for SSIT’s top four holdings

On 16 February 2026, SSIT reported significant valuation increases for its top four holdings ahead of its interim results. ICEYE rose by £33m (34%) from the end of September to December 2025, ALL.SPACE by £24m (80%), D-Orbit by £8m (23%), and HawkEye360 by £4m (15%), totalling a £69m uplift.

These gains led to a £16.6m performance fee provision included in the NAV calculation. However, the manager has stressed that the performance fee will only be paid if certain conditions are met, including having enough cash available and the total of net realised gains, unrealised IPO gains, changes in listed holding values, and investment income exceeding the payout amount.

Further NAV growth expected

SSIT’s manager sees recent defence and geopolitical changes as strong long-term positives. These trends are expected to support steady NAV growth over the next year and beyond, as new contracts boost portfolio company revenues and more deals are secured.

Breakdown of portfolio valuation changes

Figure 6 shows the changes in the fair value of SSIT’s holdings over the period. The total value of the portfolio rose by £71.8m, or 27.6%, from £259.8m to £331.6m over the half year. Six existing portfolio companies completed new funding rounds, including major ones for ICEYE, D-ORBIT, and HawkEye360. SatVu also raised £30m in February, with new backing from the NATO Innovation Fund and British Business Bank.

The manager notes that these unrealised gains show strong progress in the underlying companies. The manager’s strategy is to work closely with these companies and help them realise gains through IPOs, mergers, or secondary sales.

SSIT’s portfolio companies do not use fixed valuation schedules. Instead, fair values are updated after specific events like funding rounds or major business developments. This reduces unnecessary changes in NAV but can mean some holdings see no change in value for periods of time.

Figure 6: Investment portfolio movements

Xona – 167% valuation uplift following completion of latest funding round

On 26 March 2026, SSIT announced a significant increase in the value of its holding in Xona Space Systems after an oversubscribed US$170m series C funding round. This raised the fair value of SSIT’s holding by 167%, from £10.5m at the end of December 2025 to £28.0m, adding about £17.5m, or 7.37p per share, to SSIT’s NAV.

Xona (www.xonaspace.com) is developing a new low-earth orbit satellite navigation system to improve the accuracy and reliability of current GPS. This technology benefits both civilian and defence uses, making it increasingly important for national security.

Xona’s system can deliver centimetre-level positioning accuracy, about 50-100 times better than traditional GPS, through a simple software upgrade. This major improvement is expected to unlock high-value uses in autonomous vehicles, drones, robotics, advanced air mobility, and next-generation industrial and logistics sectors.

SSIT’s manager notes that current satellite navigation systems already support trillions of dollars in global economic activity and are vital for transport, telecoms, financial systems, and supply chains. By improving both accuracy and reliability, Xona aims to lead the next stage of global GPS infrastructure.

SSIT’s manager points to Xona as a strong example of its development programme. Seraphim first connected with Xona’s founder while he was still at business school, bringing him into its accelerator to prepare for fundraising. Seraphim co-led Xona’s early funding rounds, with SSIT investing in later rounds.

Portfolio returns

SSIT’s positive NAV growth was driven by unrealised returns

From its launch on 14 July 2021 to 28 February 2026, SSIT achieved a NAV total return of 45.2%. Although returns from listed equities have held back performance, this has been outweighed by strong recent gains in the unlisted portfolio.

Figure 7: SSIT performance from launch to 31 March 2026

We continue to use the MSCI World Aerospace and Defence Index as a benchmark for SSIT. The index began to outperform from October 2023, following the Israel-Gaza conflict, and has since moved ahead further as geopolitical tensions stayed high and Europe increased defence spending. However, as the market recognises the dual-use potential of SpaceTech and strong valuation gains appear in SSIT’s portfolio, SSIT’s NAV has started to close the gap. The war in Ukraine and recent events in Iran have highlighted the importance of SpaceTech. In our last note, we observed that SSIT benefits from the same positive trends driving defence stocks, so the widening gap seemed less justified.

Since then, the gap has narrowed, but we still see strong catch-up potential for SSIT. The manager notes that about 70% of the portfolio has defence applications, and investee companies are showing increasing profitability, with 85% expected to be EBITDA profitable this year.

Figure 8: SSIT performance over periods ended 31 March 2026

Premium/(discount)

Figure 9 shows that SSIT’s rating has improved sharply over the past year, especially in the last six months. Rising geopolitical tensions, particularly doubts over US support for NATO and Ukraine, have led European and other NATO countries to increase defence spending. This has boosted demand for defence applications, including SpaceTech, which the market now sees as increasingly important.

Even if current conflicts ease, weaknesses in global defence have been exposed, and the push to rearm is likely to continue. SSIT’s move from a roughly 50% discount to NAV a year ago to a mid-20s premium today suggests a lasting change in its valuation. Unlike SSIT, its wider growth capital peer group has not seen a similar narrowing of discounts.

Over the last 12 months, SSIT’s share price has ranged from a 50.1% discount to a 48.7% premium to NAV, averaging a 20.5% discount. On 27 April 2026, SSIT was trading at a 33.6% premium. By comparison, the peer group’s average discount ranged from 45.3% to 15.0%, averaging 30.6%, and stood at 17.4% on 27 April 2024.

The ongoing Ukraine conflict has highlighted the dual-use and critical role of SpaceTech in defence, helping to push SSIT’s discount down to a small premium. The outbreak of war involving Iran, the US, and Israel briefly unsettled SSIT’s share price, but it recovered quickly, which we believe reflects the strong defence case for SSIT.

As mentioned earlier, SSIT’s manager expects strong NAV growth each quarter. A potential SpaceX IPO later this year could also boost interest and drive the share price higher, possibly justifying a higher premium now. Given this, the current share price may present an attractive opportunity.

Figure 9: SSIT premium/(discount) from launch¹

Potential fundraise via a C-share issue

On 16 April 2026, SSIT’s board announced a possible C-share offering to raise up to £350m. This offer is open to both institutional and retail investors, allowing the trust to raise new capital without causing cash drag for current shareholders while the funds are invested.

With SSIT trading at a strong premium, issuing new shares should benefit existing shareholders by improving market liquidity and lowering the trust’s expense ratio, as fixed costs are spread over a larger asset base. It should also reduce the blended management fee, which is 1.25% on net assets up to £300m and 1% above that.

SSIT’s manager reports a strong pipeline of new opportunities and expects further NAV growth as recent contract wins boost revenues and business momentum. If the long-awaited SpaceX IPO happens, it could also increase investor interest in the SpaceTech sector. SSIT appears to be seizing the initiative at a moment when both sentiment and fundamentals appear to be in its favour.

SWOT analysis

Figure 10: SWOT analysis for SSIT

SSIT offers a unique investment proposition in the London-listed closed end funds space. While a few other trusts have a proportion of their portfolio in SpaceX, only SSIT gives investors pure play exposure to some of the most exciting private companies in SpaceTech.

SSIT offers a way for all investors to get exposure to this high growth and otherwise difficult to access sector, for the price of a share.

SSIT’s portfolio has displayed impressive growth recently with a number of its largest portfolio companies showing very material valuation uplifts. Median revenue growth of 79% for the top 10 companies over the past 12 months.

SSIT could suffer periods when absolute and/or relative performance is difficult, particularly when the market backdrop is unhelpful for growth investors, such as when inflation and interest rates pick up.

No prospect of a dividend yield, although this should be well understood by shareholders.

There are increasing signs that growth investing is coming back into favour, against a backdrop of interest rate cuts, both in the US and globally. The political temperature has risen across the globe and wars in Ukraine and Iran illustrate how important SpaceTech is to modern defence. With Europe rapidly rearming and other nations looking to bolster their defences, some of SSIT’s holdings could have long growth runways.

Investors appear to be looking more favourably at SpaceTech, recognising its increasing importance in defence and, while its share price has benefitted, it still looks compelling versus aerospace and defence companies more broadly. The investment opportunity offered by SpaceTech is way larger than any one company (as owning just Nvidia or OpenAI would miss much of the broader AI revolution). SSIT provides this broad exposure in a way that owning SpaceX – directly or indirectly – cannot.

The market could once again turn against growth investing, particularly if inflation re-emerges as a threat and nominal GDP growth falters. However, the need for nations to bolster their defences will likely outweigh such considerations.

Given the concentrated nature of the portfolio, single stock issues could hurt performance.

Bull vs bear case

Figure 11: Bull vs bear case for SSIT

Previous publications

For more information on SSIT, you can read our previous notes listed in Figure 12 below. Click on the notes in Figure 12 or visit our website to access them.

Figure 12: QuotedData’s previously published notes on SSIT

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