If SpaceX goes public with a valuation of $1.75 trillion, several hedge funds will reap huge returns

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On May 19th, per the Financial Times, hedge fund D1 Capital Partners is poised to be one of the biggest winners next month when SpaceX goes public. Several Wall Street firms are set to pocket massive returns. Sources indicate that if SpaceX launches its IPO at the projected $1.75 trillion valuation, the stake owned by Dan Sundheim’s D1 Capital Partners could be worth roughly $20 billion. D1 is among the few hedge funds that made early bets on SpaceX back when an initial public offering felt like a far-off fantasy. The fund, led by Sundheim, first invested in SpaceX in 2020, at a time when the aerospace firm was valued at around $36 billion. Its SpaceX holdings make up a large chunk of its total assets and have been a huge driver of its gains. The fund currently oversees roughly $35 billion in assets. Last year, Sundheim told investors he has no plans to sell any of his holdings, “even though we’ve received significant and substantive inquiries.” Operating under the radar, hedge fund Darsana Capital Partners is also on track to scoop up billions in gains. Founded by Anand Desai in 2014, the firm made its first SpaceX investment in 2019, when the company was valued at around $33 billion. It’s participated in multiple funding rounds, including purchasing shares via tender offers from SpaceX employees looking to cash out. Its holdings have grown since, thanks to early investments in X— Musk merged the social media platform with his AI lab xAI, which later merged with SpaceX. Sources say that if SpaceX hits the projected $1.75 trillion valuation, the New York-based hedge fund will hold SpaceX shares worth roughly $15 billion. That tally doesn’t include its indirect exposure to SpaceX through its EchoStar stake: EchoStar previously struck a spectrum license deal with SpaceX, with payment in the form of shares of the rocket company. SpaceX’s growth has accelerated over the past five years, driven by the success of its Starlink satellite internet service— which accounted for more than half of the company’s $18.7 billion in revenue last year— plus its rocket launch business. Musk has also boosted SpaceX’s total valuation from under $400 billion less than a year ago to its current $1.25 trillion via a series of transactions with X and xAI. In recent weeks, Musk secured the right to acquire programming startup Cursor for $60 billion and struck a deal with AI firm Anthropic for excess computing power leasing. One SpaceX investor says this arrangement could add roughly $5 billion in annual revenue growth.

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