Edison Updates on Seraphim Space Investment Trust: Diverse Portfolio Foots the Path to Break-even

On April 10, 2024, Edison Investment Research Limited provided an update on Seraphim Space Investment Trust (SSIT), indicating a modest 1.8% NAV total return in the first half of 2024. This performance was influenced by a mixed bag of results, with significant up rounds, notably from D-Orbit, counterbalanced by downward adjustments in fair value for some holdings due to various challenges. Despite these hurdles, the spacetech sector continued to show strong fund-raising capabilities throughout 2023.

Edison highlights that 82% of SSIT's portfolio is on a solid financial path, with 60% of its holdings fully funded according to management's projections, and an additional 22% funded for at least another 12 months from year-end 2023. This financial durability is critical for early and growth-stage companies in the spacetech sector, where SSIT predominantly invests.

The trust provides a unique opportunity for investment in spacetech, primarily through private companies which now constitute about 97.5% of its portfolio value. This positions SSIT as a viable alternative to ETFs that generally focus on larger, listed entities with partial spacetech exposure. Highlighted within the update is ICEYE, SSIT’s largest holding, which now boasts EBITDA positivity — a noteworthy achievement showcasing the commercial viability within SSIT’s investment choices. Looking ahead, SSIT, with its diversified and now more affordably valued portfolio, may stand to benefit from potential IPO activities forecasted to gain momentum by 2025.