As the placement agent for a SpaceX dedicated fund, Alta created access to a mix of small and large ticket-size investors in this exclusive deal via a VCC feeder-fund.

Company background

Founded in 2002, SpaceX has established its position at the forefront of the space industry, having reached multiple historic milestones. SpaceX generates revenue through a range of commercial and government contracts, including space station resupply and commercial satellite launch missions, as well as science and national security-related missions for the US government. Some of its key highlights include:

• As of 2018, the company has secured over 100 missions to its manifest, representing over US$12bn in contracts
• Against the backdrop of SpaceX’s progress, Morgan Stanley's October 2021 Analyst Report projects a US$200bn bull-case valuation for SpaceX
• To date, SpaceX has raised >US$6bn, from world-renowned investors including Fidelity and Google

Overview of transaction

In October 2021, SpaceX announced a US$750m tender offer at a valuation of US$100bn. Alta had access to the opportunity through a partner fund manager which Alta previously worked with.

Based on our data analysis of investor preferences, Alta reached to >1,800 investors out of our entire investment network who had potential interest in SpaceX.

Alta worked with a licensed fund manager to set up a Variable Capital Company (“VCC”) feeder fund to amalgamate the invested capital.

Significance of Transaction

Through our investor targeting process, Alta had a 43% open rate and 19% click through rate via our email launch (highest in Alta’s history and ahead of industry benchmarks), with 50% of investors responding within 24 hours of receipt. Alta received US$24m worth of investments from 30 investors, with ticket sizes ranging from US$10k to US$5m.

The opportunity to invest in SpaceX was launched on 22 October 2021 and Alta completed the transaction on 15 December 2021 – closing the transaction in <2 months from initial launch.

To create access to private market opportunities for more investors, Alta worked towards creating access to smaller-ticket investors – lowering min. ticket size US$10k.

30% of committed investors had ticket sizes <US$100k, suggesting a much larger market of investors would be interested in private market unicorns at reduced ticket sizes.

Alta's Role

• Alta acted as a placement agent between SpaceX’s fund manager and Alta’s investment network
• Alta brought the opportunity to our wide investment network and created the structure to amalgamate the invested capital - giving access to small ticket investors

• Alta acted as a placement agent between SpaceX’s fund manager and Alta’s investment network
• Alta brought the opportunity to our wide investment network and created the structure to amalgamate the invested capital - giving access to small ticket investors