London, UK, 10 April 2024

Edison issues update on Seraphim Space Investment Trust (SSIT): Several key holdings funded to break-even

Seraphim Space Investment Trust (SSIT) reported a modest 1.8% NAV total return (TR) in H124, as the positive impact from up rounds (most notably D-Orbit’s) was partly offset by downward fair value adjustments of some other holdings due to technical setbacks or operational underperformance. However, we note that fund-raising across the spacetech sector remained robust in CY23. Moreover, 82% of SSIT’s portfolio has a robust cash runway, with 60% fully funded based on the projections of its management, and 22% funded for 12 months or more from the end of 2023. Excluding the fully funded companies, the remaining portfolio has a fair value weighted average cash runway of 12 months, according to Seraphim Space.

SSIT offers a rare opportunity to invest in a portfolio exclusively composed of early and growth-stage spacetech businesses (with c 97.5% of the portfolio value now in private companies), representing a viable alternative to ETFs focused on listed large-cap companies with only partial exposure to the theme. Several of its largest holdings have experienced good commercial traction recently, including ICEYE (SSIT’s largest holding, making up 20% of the portfolio), which has recently become EBITDA positive. Once IPO activity rebounds, this could provide SSIT’s major holdings the opportunity to list (though this seems more likely in CY25 rather than this year). SSIT’s diverse portfolio is now available at a wide discount to NAV.  

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