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Once I first highlighted penny inventory Seraphim House Funding Belief (LSE:SSIT) in July 2023, it was simply 29p. Then in March this yr, I took a second have a look at 61p.
Now, as I write, it’s up at 85p, demonstrating actual momentum.
However is it nonetheless worthy of consideration at this greater worth? Let’s take a more in-depth have a look at this under-the-radar belief.
Distinctive belief
For these unfamiliar, this can be a area of interest funding belief with stakes in space-related start-ups. These span Earth remark (satellites that take photos of the planet), house information and analytics, satellite tv for pc communications, launch and orbital logistics, and defence functions.
Certainly, a handful of corporations have gone public from Seraphim’s portfolio. These embrace AST SpaceMobile, which is constructing a space-based mobile broadband community for smartphones, and Voyager Applied sciences, which raised $382.8m in June 2025.
AST SpaceMobile inventory is up 279% yr thus far. Within the first quarter of 2025, the belief bought 95% of its holding in AST for internet proceeds of about $10.5m (£7.9m), at 187% of the unique value.
In June, the belief held 25 investments valued at £259.8m, a wholesome uptick from £201.5m a yr earlier. The highest holding is ICEYE, which has doubled in worth during the last yr on the again of a string of main industrial successes.
ICEYE builds radar imaging satellites that may take photos via clouds, smoke, darkness and storm. It has signed a number of contracts with nation states, together with a €200m take care of the Polish Ministry of Defence. ICEYE has additionally launched a three way partnership with German defence big Rheinmetall.
One other holding making nice progress is Skylo, which has launched Europe’s first satellite tv for pc SMS service with Orange.
Defence publicity
Now, one danger right here is that the portfolio is closely concentrated, with ICEYE representing 37.4% in complete. If its valuation took a tumble, then it might have an outsized damaging influence on the belief’s internet asset worth (NAV).
Conversely, if ICEYE went public, it might internet Seraphim fairly a windfall. The Finnish firm has sturdy industrial progress, significantly within the defence sector, so I wouldn’t rule out an IPO in 2026 (particularly if SpaceX lists).
From what I can collect, round three-quarters of the portfolio has defence functions. And with army spending set to skyrocket throughout Europe, many of those holdings might see great income progress in future.
As ‘Pax Americana’ dwindles, we’re witnessing doubtlessly essentially the most important geopolitical shift since World Struggle II…File defence budgets are driving large demand for cutting-edge SpaceTech capabilities. [The] portfolio has considerably benefited from this evolving panorama. Will Whitehorn, Chair of Seraphim House Funding Belief.
Blast off?
Even after leaping 55% yr thus far, the belief is buying and selling at a whopping 31% low cost to NAV. So buyers can seize a slice of the portfolio for lower than its perceived underlying worth.
For readers desirous to spend money on house and defence, I reckon the inventory is effectively price contemplating at 85p. As its portfolio matures over the subsequent few years, Seraphim could possibly be set for blast-off.
