Australian investors are increasingly turning their gaze towards Wall Street, eager for a slice of the technology and artificial intelligence deals flooding the US market. This shift comes as investors lose patience with the lack of high-profile transactions on the local market, instead chasing the flurry of mega-floats overseas. Much attention has converged on Elon Musk’s SpaceX, a rocket and space data centre conglomerate, which recently unveiled its hotly anticipated prospectus. With an anticipated valuation of US$1.5 trillion ($2.1 trillion) and an expected raise of US$80 billion, SpaceX’s initial public offering would be the biggest in history, drawing significant global interest.
Gaining direct exposure to privately held SpaceX has been limited for retail investors, but options are surfacing. The ASX-listed BetaShares Space Industry ETF has attracted $8.4 million in inflows in its first 13 days and will add SpaceX two trading days after its float. Rival ETF provider Global X is also planning to launch its own space tech ETF. For wealthier Australians, direct investment through private asset managers has been available. BFA Global Investors, an alternative investment manager, raised over US$50 million from clients to invest in SpaceX, alongside stakes in ChatGPT maker OpenAI and Anthropic, the company behind the Claude AI model.
ASX-listed trusts offer another pathway. Pengana Capital’s Private Equity Trust, which provides global private equity investments, first backed SpaceX in late 2020. That position has since ballooned from 2 per cent to 14 per cent of the portfolio. Pengana is also poised to launch a global private AI trust on the ASX. The broader US tech sector continues to attract capital, with OpenAI reportedly rushing towards a public listing and Anthropic set for its first operating profit, pursuing new funding. Fund managers are also finding discreet ways, such as Contrarius Investment Management building a position in Nasdaq-listed EchoStar, which holds a more than 2 per cent stake in SpaceX.
