Thoughts on PE1 as a vehicle to get exposure to SpaceX

SpaceX (Space Exploration Technologies Corp.) is a private aerospace company founded by Elon Musk in 2002 that designs rockets, launches satellites, and develops space technology. SpaceX has become the dominant global launch provider, dramatically lowering launch costs through reusable rockets, and is now one of the most valuable private companies in the world, with valuations often estimated above $US150–200 billion.

SpaceX is widely expected to pursue a public listing this year, potentially becoming one of the largest IPOs ever, which has naturally sparked interest in gaining exposure ahead of time. One of the few ASX-listed vehicles with pre-IPO exposure is Pengana Private Equity Trust (PE1), which holds a stake in SpaceX alongside a broad portfolio of private technology companies. The fund invests across hundreds of private businesses globally, including high-profile names in AI and software, giving investors access to parts of the private market that are normally difficult to reach.

• However, considering the recent software downward rerating we’re sure a number of PE1’s holdings have endured a tough 6-12 months.

Hence, it’s important to view PE1 as a diversified private equity vehicle rather than a direct SpaceX proxy. While SpaceX is one of its larger holdings, it represents only a portion of the overall portfolio, meaning any upside from a future IPO would be diluted by the broader investments. In that sense, PE1 offers indirect exposure to SpaceX with diversification benefits, but it won’t move purely in line with SpaceX’s valuation.

Our research has SpaceX nearer 8% of PE1’s holding:

• PE1 has a market cap of ~$400mn.
• PE1 reportedly holds less than 0.1% of SpaceX, but if it floats for $US200bn the number becomes meaningful to PE1.

Considering MM is bullish equities and the software sector through 2026 PE1 looks good value ~$1.50, supported by its 4.4% yield.

We end with an important warning here – there have been several promoters out there trying to lure in investors with the promise of Space X stock. These are more often than not just marketing ploys (at best). There are also promoters of opaque structures that investors are being lured to buy into, on the promise of winning big in Space X. Please be very careful of these. Ownership and exposure are often very convoluted, and these funds, often spruiking an allocation through an existing holder sell down pre IPO, can have many onerous conditions. Before making any investments in anything like this, always consider the safety and security of capital, and have a very good understanding of counterparties. Scamming is rife, using SpaceX as a hook. Please be very careful.