Space is well on its way to becoming a multi-trillion dollar industry.
More than $12BN of private capital was invested in the space ecosystem in 2021, an increase of 60% on the year before. While it is currently estimated to be worth $350BN, Morgan Stanley estimates that the global space industry could generate a revenue of more than $1TRN by 2040 and Family Offices are leading the charge.
Elon Musk has sparked an interest in Space technology and by driving down the cost of launches into space has also enticed many more UHNWIs and Family Offices to join the revolution.
Marc Bell Capital, a Florida-based Single Family Office is one of them. The Family Office seeks early-stage investment between $1K and $250K and focus primarily on aerospace technology. In 2015, they made a direct investment in Vayu Inc, an aerospace company that builds affordable unmanned aerial vehicles for cargo transport. In 2017, the Family Office made another direct investment in Vector Launch, another aerospace company that aims to launch suborbital and orbital payloads.
Another Family Office leading the charge is Copley Equity Partners, based in MA and focused on aerospace and aeronautics. In October 2020, the Family Office made a direct investment in Aethon Aerial Solutions, an aerospace company that specialises in airborne LiDAR and remote sensing for commercial industrial and defence applications. In January 2021, the single Family Office made another direct investment in ETA Global, a North-Carolina based company delivering consumables to space.
Third but not finally is Bavarian Capital Management. The German-based Single Family Office manages the wealth of Niko Dimitrov and boasts a diverse portfolio of private equity, venture capital, commodities, real estate and more. In 2019 they diversified further by investing in Mynaric, a manufacturer of laser communication equipment for airborne and spaceborne communications network or as they self-refer, ‘internet above the clouds.’
Satellite broadband represents around 50% of the projected growth of the global space economy over the next two decades. Satellite broadband access will offer the best short and medium-term opportunities for investors and will continue to drive down the cost of data.
Is your Family Office investing in space?