The world's first listed SpaceTech fund sees its discount to net asset value narrow sharply as satellite companies win major military deals
Seraphim Space Investment Trust PLC (LSE:SSIT), the London-listed fund focused on space technology companies, reported a 20.1% rise in net asset value (NAV) for the six months to 31 December 2025, driven by a wave of defence contracts and new equity rounds at its largest holdings.
NAV rose from £281.1 million to £337.5 million over the period, while the portfolio valuation increased 27.6% to £331.6 million.
The trust's share price rose 40.2% to 120 pence during the period, narrowing the discount to NAV from 27.8% to 15.7%.
The gains were concentrated in the fund's top holdings, with ICEYE, the Finnish synthetic aperture radar (SAR) satellite company that represents 39% of NAV, delivering the largest contribution after closing a €150 million Series E financing round.
ICEYE's newly formed joint venture with Rheinmetall, the German defence group, was awarded a €1.7 billion contract to provide the German Armed Forces with space-based reconnaissance data.
It also signed a $168 million contract with the Finnish Defence Forces and a separate deal with Japan's IHI Corporation covering an initial four satellites with options for up to 20 more.
ALL.SPACE, a satellite connectivity company representing 15.9% of NAV, saw its fair value rise by £23.1 million to £53.8 million, with the trust noting that its 31 December 2025 valuation partially reflected corporate activity that completed shortly after the period end.
HawkEye 360, which uses radio frequency signals intelligence for defence customers and represents 10.1% of NAV, completed a $150 million Series E financing round and secured a multi-year data access agreement worth more than $100 million with a strategic partner.
The portfolio's aggregate fair value now stands at 198.1% of cost, compared with 131.9% six months earlier.
Around 85% of the portfolio by fair value, including seven of the top 10 holdings, is projecting it will be earnings before interest, tax, depreciation and amortisation (EBITDA) profitable in 2026.
Approximately 77% of the portfolio by fair value had a runway of at least 12 months' cash at the period end.
SSIT ended the period with £22.1 million in cash, broadly flat from £21.5 million six months earlier, with a potential additional £3.9 million of liquidity through listed holdings.
A performance fee provision of £16.6 million was accrued during the period, reflecting the strong unrealised gains.
Since the period end, further positive developments have included a £30 million funding round for SatVu, backed by the Nato Innovation Fund and the British Business Bank, and $175 million of new financing for weather intelligence company Tomorrow.io.
Will Whitehorn, chair of the trust, said the strong performance was "broad-based across our portfolio" and that the fund continued to see a "strong pipeline of compelling investment opportunities."