SpaceX, the private launch company founded by Elon Musk, is preparing for a public debut that has drawn the attention of British pension funds. Three factors dominate the strategic calculus.
First, valuation. SpaceX is expected to be valued at over $150bn, a figure that reflects its dominance in commercial satellite launches and its role in Nasa’s Artemis programme. For pension trustees, such a high multiple raises questions about long-term returns versus volatility.
Second, regulatory exposure. The UK’s pension regulator has yet to issue formal guidance on space-sector investments. Funds considering a stake must weigh the absence of a domestic legal framework against the potential for high growth, noting that SpaceX operates under US export controls and Federal Aviation Administration oversight.
Third, geopolitical alignment. A stake in SpaceX ties UK retirement savings to US defence and space policy. The company’s contracts with the Pentagon and its Starlink satellite network, which has provided connectivity to Ukraine, make it a vehicle of soft power. British funds must assess whether this alignment serves their fiduciary duty to members, particularly if geopolitical tensions escalate.
Industry sources indicate that several large UK pension schemes, including the Universities Superannuation Scheme, are conducting due diligence. The move would mark a departure from traditional infrastructure investments. A final decision is expected before the end of the financial year.
