Ed Ludlow

And we believe that that dynamic will exist here with SpaceX.

It is probably one of the businesses in our portfolios with one of the most robust competitive advantages and growth opportunities.

If you look at orbital launches done annually, SpaceX is leaping bounds ahead of anybody else.

It has an incredibly strong market position, a very strong proposition to its customers, and we think ultimately that will be the main driver of return to shareholders.

we're showing kind of the rest of your portfolio of private company investments.

And I get that's actually split across more than one trust, right?

But what those companies all have in common is the staying private longer.

Many of them have done tenders or secondaries.

Explain what's happening in that private market that's supporting that theme.

Yeah, so there are really sort of two kinds of transactions that we see happening in the later stages of the private markets.

We are continuing to see very large primary capital rounds where companies are raising capital to invest in their businesses, and there it's businesses such as Anthropic,

such as Anduril, such as Wave, that are raising billions of dollars to invest in the huge market opportunities that they have.

But that capital that they're raising is going into their businesses for investment.

You then have a second category of large late-stage transaction, which is secondary transactions.

where either early shareholders or employees are selling to other shareholders.

And I would categorize the transactions done by the likes of Databricks or Stripe, or indeed some of the transactions that SpaceX have done in this camp.

Now, what's making that possible is the fact you have businesses in very strong financial positions.

that are, in many cases, generating cash flow where they actually don't need more external capital, but where there's clear demand for their shares.

And so, matching off some of that demand and supply is good for employees who want to be able to realize some of the gains from their options.

It's good for the companies as they start to potentially reduce some of the overhang that might exist as they come to the public markets.