Seraphim Space Investment Trust: Science Fiction into Science Fact

SSIT is positioned at the intersection of commercial space and defence. At FY25 year-end, 75% of the portfolio was focused on companies with defence or dual-use applications, including secure communications, satellite imagery and mission-critical data. Portfolio companies like ICEYE are now generating over €250m ($270m) of revenue, more than €100m ($108m) of profit and hold a €1.5bn ($1.6bn) contracted backlog, highlighting how space is becoming core national infrastructure. Companies like ALL.SPACE are also securing certifications and partnerships with major global satellite networks, strengthening their role in defence communications. With defence budgets rising and demand increasing for secure, space-based capabilities, SSIT offers exposure to technologies that are becoming critical to national security.

The portfolio is maturing, with more companies moving into commercial delivery. The top 10 holdings have grown revenue at an average of 79% in 2025, and over 85% of the portfolio by value is expected to be EBITDA profitable in 2026. Momentum has continued into 2026, with Xona's $170m Series C delivering a 167% uplift in the fair value of SSIT's holding, HawkEye 360 achieving a $2.84bn IPO, and SSIT completing a £137 million C Share issue to fund deployment into pre-identified investment opportunities. Multiple portfolio companies also continue to deploy satellites and capabilities in orbit, demonstrating real-world traction across defence, climate and data services. 100% of the portfolio now has dual-use applications, with over 70% predominantly focused on defence, reducing risk and supporting the case for further valuation growth as companies scale.

The private portfolio's fair value is now c.198% of cost, and multiple holdings are approaching the 2026 EBITDA profitability milestone, supporting a clearer pathway for potential exits, re-ratings, or NAV realisation. Six portfolio companies have achieved unicorn status post SSIT investment, with an aggregate £30bn increase in enterprise value across the portfolio and £6bn of equity raised by investees since SSIT's initial backing. With increasing institutional focus on sovereign tech and defence infrastructure, SSIT offers public market investors rare access to a portfolio of mission-critical, growth-stage assets that are typically inaccessible outside of private equity or venture funds.

• ICEYE defence contract visibility: Continued contract wins are supported by a €1.5bn ($1.6bn) backlog and strong revenue growth, increasing confidence in future revenues and commercial scale.

  
  

• HawkEye 360 post-IPO re-rating: HawkEye 360's NYSE listing at $2.84bn provides a live public market reference for one of SSIT's top holdings. Trading performance and institutional adoption could drive a re-rating of SSIT's NAV and narrow the discount to fair value.

• IPO and secondary liquidity events: With HawkEye 360 now listed at $2.84bn, the focus shifts to further liquidity events across the maturing portfolio. IPOs or trade exits from other holdings would provide additional valuation visibility and crystallise NAV upside.
  
  

• Scale benefits from a larger trust: The completed £137 million C Share issue, the largest investment company fundraise since 2023, has materially grown the asset base. As proceeds are deployed, the larger trust lowers the blended management fee, spreads fixed costs across more shares, and improves liquidity, making the trust more attractive to a broader investor base.

• Defence-aligned capital cycle: Continued global militarisation and sovereign tech rearmament are likely to drive systemic demand for dual-use satellite, surveillance and secure comms solutions, supporting contract flow across mature holdings. This would benefit SSIT’s maturing portfolio of providers.
  
  

• Space economy inflection point: Over the next 3–5 years, the convergence of satellite constellations, autonomous mobility, climate tech and cloud infrastructure could push select SpaceTech names to scale, driving outsized returns if SSIT’s leaders maintain position.
  
  

• Portfolio Revaluations: Recent funding rounds, including Xona Space Systems, have driven meaningful NAV uplift, with further revaluations possible as portfolio companies raise capital or hit milestones.

Despite growth potential, many SSIT holdings remain in developmental phases, meaning delays, pivots, or technical failures could impact future value realisation. The technologies being developed often involve complex engineering and regulatory hurdles, and require long sales cycles, especially with government clients. If execution timelines stretch or key projects fail to convert to commercial scale, investors may face prolonged holding periods or markdowns.

Many portfolio companies are not yet profitable and rely on future fundraising. At 31 December 2025, around three-quarters of the portfolio (77% of fair value) had a robust cash runway, with 70% funded for 12 months or more from that date. However, the remaining c.23% still depends on supportive capital markets or strategic funding. Delays in securing follow-on rounds could result in down rounds or reduced operational scope. In a tighter funding environment, some companies may be forced to scale back ambitions or accept down rounds. This could affect SSIT’s NAV or slow the development timeline of certain technologies, especially in hardware-intensive segments like launch systems or infrastructure.

SSIT's shares have historically traded at a wide discount to NAV, but have re-rated sharply, with the price up 120.6% over the past year. If sentiment towards early-stage tech or space turns negative, or if exit visibility slips, the shares could give back gains. Market scepticism toward the valuation methodologies used for unlisted assets, as well as macro volatility, could also weigh on the rating.