Hedge fund D1 Capital Partners is reportedly poised to reap significant benefits from the upcoming public listing of Elon Musk's SpaceX.
D1 Capital's stake in SpaceX could be worth approximately $20 billion if the rocket manufacturer achieves its anticipated $1.75 trillion valuation, reported the Financial Times. The hedge fund, managed by Dan Sundheim, was one of the early investors in SpaceX, taking a position in 2020 when the company was valued at around $36 billion.
Despite receiving substantial interest, Sundheim has previously stated his firm's intention to retain its holdings in SpaceX. The investment in SpaceX constitutes a significant portion of D1 Capital's total assets and has been a major contributor to the fund's returns.
Another hedge fund, Darsana Capital Partners, is also set to profit handsomely from SpaceX's public listing. The firm, founded by Anand Desai, first invested in SpaceX in 2019. If SpaceX reaches its projected valuation, Darsana's stake could be worth around $15 billion, as per the FT report.
D1 Capital Partners, Darsana Capital Partners and SpaceX did not immediately respond to Benzinga's requests for comment.
The report about the hedge funds enjoying a windfall from SpaceX's public listing comes on the heels of the news that BlackRock Inc. (NYSE: BLK) is reportedly in talks to invest between $5 billion and $10 billion in the upcoming IPO. The investment would come from BlackRock's actively managed funds and could vary depending on the offering's final pricing and terms.
The company reportedly informed shareholders of a 5-for-1 stock split, reducing its per-share price from approximately $526.59 to $105.32, and plans to make its public market debut with a June 12 Nasdaq listing under the ticker "SPCX." The chosen date is said to see a rare alignment of planets, and comes ahead of July 4, America's 250th anniversary.
However, the buzz around SpaceX's IPO has raised concerns among some market watchers. CNBC's Jim Cramer warned that the anticipated public debut could inflate valuations to dangerous levels, potentially creating a bubble. He cautioned that if underwriters release too few shares, demand could push SpaceX's valuation toward $5 trillion.