Founder at HEALEY PRE-IPO | I connect buyers & sellers of private tech stocks | Former Portfolio Manager at Destiny (NYSE:DXYZ) & Senior Director at Forge (NYSE:FRGE)
To buy SpaceX in a tender, or not to buy SpaceX in a tender? In recent years, SpaceX has been engaging in tender programs where stockholders can sell their shares back to SpaceX and its chosen few investors (think: elite Venture Capital funds) who get to buy the shares. Often, SpaceX investments end up structured in multi-layer SPVs, since often it's one fund manager offering its allocation onto another fund manager, who is in turn offering its allocation onto investors. Multi-layer SPVs can be unacceptable for some investors on principle, while others can invest in this structure but with additional diligence. ...BUT, SpaceX tenders are usually hugely oversubscribed, and soft promises of shares to certain fund managers often end up REDUCED or CANCELED altogether. In this case, an investor who wired funds earnestly to a fund manager may have the deal canceled and funds returned, leaving them back to square one in sourcing a SpaceX investment. Sometimes the waiting period to know if an allocation is certain can be several weeks. Some investors still think it's worth it to try, and some of these tender allocations do materialize and result in closed deals. Other investors may specifically pursue deals in SpaceX vehicles which ALREADY own existing shares (from prior rounds/tenders), where the supply is more locked in versus waiting for a potential tender allocation. SpaceX remains an active name to trade in the secondary markets, but is a very nuanced market to navigate, requiring close diligence and care, especially since different investment routes exist with different quirks and terms. #Secondaries #SpaceX #Tenders
