SpaceX is set to go public, potentially becoming one of the world’s largest companies. Scottish Mortgage investment trust has already profited significantly from its 2018 investment in SpaceX, turning a $200 million stake into $3.3 billion. Three other Baillie Gifford trusts also have significant stakes in SpaceX, with it as the top holding in their portfolios.

UK investors cannot directly buy SpaceX shares but can gain exposure through investment trusts like Scottish Mortgage, which holds a 15% stake. While there is no confirmed date for SpaceX’s IPO, market speculation points to a potential listing in 2026. Investment trusts like Scottish Mortgage have the flexibility to invest in private companies, unlike open-ended funds.

SpaceX’s valuation has doubled from $400 billion to $800 billion, making it a lucrative investment for early backers. The company aims for an IPO valuation of $1 trillion or more. Scottish Mortgage’s investment in SpaceX has grown from $200 million to $3.3 billion, accounting for over 15% of its portfolio. Lead manager Tom Slater is comfortable with the high SpaceX exposure and optimistic about the company’s future prospects.

Despite the high exposure to SpaceX, Baillie Gifford trusts have reduced their stakes in the company during the last liquidity window. Edinburgh Worldwide decreased its holding due to concentration risk and limits on new investments in unlisted companies. Scottish Mortgage, however, maintained its position in SpaceX.

Read more at Morningstar: Which UK Investment Trusts Hold SpaceX Shares?