Seraphim Space Investment Trust: Science Fiction into Science Fact

SSIT is uniquely positioned at the intersection of commercial space and defence innovation. At FY25 year-end, 75% of the portfolio remained focused on companies with direct or dual-use defence applications, including secure communications, ISR (intelligence, surveillance and reconnaissance), satellite imagery and mission-critical data infrastructure. Portfolio companies like ICEYE and ALL.SPACE are already embedded in the US and European military infrastructure, benefiting from strategic tailwinds like the EU’s €800bn ReArm initiative, NATO’s 2% GDP defence targets and a rearmament cycle reshaping capital markets. As modern warfare increasingly relies on space assets for intelligence, mobility, and secure data transfer, SSIT offers direct exposure to the technologies that will underpin future national security infrastructures across the West.

The trust’s portfolio is not only thematically well-positioned, it is maturing operationally. As of 30 June 2025, 66% of the portfolio by value had robust funding runways, with 44% fully funded to profitability and 22% with over 12 months’ cash runway. Over $500m was raised across the portfolio during FY25 (including key holdings such as ICEYE and ALL.SPACE). Defence-linked traction continued with ICEYE’s €200m contract with Poland and progress on its €1bn joint venture with Rheinmetall, reinforcing the trust’s exposure to sovereign space capabilities. Multiple companies have now shifted from R&D-heavy phases into commercial deployment, and some are beginning to generate recurring revenues. This momentum not only derisks the portfolio but also underscores the commercial potential and growing customer confidence in SSIT’s holdings.

SSIT currently trades at a discount to NAV of around 20%, despite positive NAV growth and operational progress across the portfolio. The private book is up 130% vs cost and eight companies are now fully funded to break-even, yet the market still prices SSIT like an early-stage venture fund. This disconnect creates an opportunity for value-focused investors. As defence-exposed public comps (e.g. MSCI Aerospace & Defence Index) have re-rated sharply since late 2023, SSIT could follow suit, especially if one or two exits crystallise value or more investors begin to view the trust through the lens of national infrastructure and sovereign capability, rather than just venture tech.

• ICEYE defence contract visibility: The €200m deal with Poland, and additional agreements with Rheinmetall and Safran, provide external validation of portfolio traction and strengthen confidence in SSIT’s exposure to active, revenue-generating programmes.

• Follow-on funding momentum: In the past six months, over $400m has been raised across the portfolio. Sustained follow-ons by top-tier co-investors would reinforce valuations, reduce funding risks and potentially drive NAV uplifts.

• IPO and secondary liquidity events: With several holdings nearing commercial maturity, IPOs or trade exits would provide visibility on valuation, crystallise NAV upside, and potentially reduce the perceived risk premium driving SSIT’s share discount.

• NAV discount reduction strategy: Management has hinted at potential share buybacks or structural steps to enhance liquidity and visibility. Demonstrable actions here could narrow the c.20% discount and make SSIT more attractive to a wider 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. 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.

Many portfolio companies are not yet profitable and rely on future fundraising. At 30 June 2025, 66% of the portfolio had strong funding runways, with 44% of NAV fully funded to break-even. However, the 34% of companies with shorter cash runways remain dependent 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.ructure.

SSIT's shares trade materially below NAV. If sentiment towards early-stage tech or space remains negative, this discount may persist, reducing investor returns even in the face of operational success. Market scepticism toward the valuation methodologies used for unlisted assets, as well as macro volatility, could keep the discount elevated. Furthermore, without visible realisations or liquidity events (IPOs, M&A), the trust may struggle to shift perception despite internal portfolio progress.

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.