Ahead of SpaceX IPO, Family Offices Are Betting Space Investments on Infrastructure and Defense
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SpaceX goes public this Friday, but several billionaire family offices told CNBC they are betting on space infrastructure and defense, not exploration itself — smart money is bypassing the hottest ticket and backing steadier cash flows.
Why isn't smart money chasing the "space dream"?
Gary Lauder holds SpaceX through an SPV — a special-purpose vehicle set up for a single investment — and two venture funds. But he told CNBC plainly: what drew him was Starlink's satellite-communication technology, not space tourism.
He invested heavily in telecom early on and took satellite-communications courses in the early 1990s. In his words: "I never dreamed of being an astronaut. It's just an important form of communication."
This means → even an early SpaceX backer framed the bet as telecom-infrastructure returns, not a rocket narrative.
The "picks and shovels" thesis — what are family offices hunting for?
Jason Blanck, who launched his eponymous family office in 2024, put it more bluntly: he focuses on "picks and shovels" in space — mission-critical hardware and data networks.
In plain terms = in a gold rush, the steadiest business is selling tools, not digging for gold. The same logic applies to space: launch cadence and flight-development costs dominate public-market chatter, but managers of permanent family capital see a different narrative.
This reflects a deeper split: public markets chase launch stories; long-duration capital backs the underlying plumbing.
Those who already profited — what comes next?
Robin Lauber's Infinitas Capital bought SpaceX on the secondary market in early 2025, citing Musk's track record and Starlink's commercial success. He called the entry valuation "reasonable" relative to the current expected level of over $1.75 trillion.
Lauber told CNBC that he would have sold some shares pre-IPO had he found a buyer at a suitable discount. He is also willing to sell locked-up shares at a discount to recoup initial cost, then watch how the remaining position performs.
Looking ahead, Lauber is evaluating more European space companies — including German launch provider Isar Aerospace — and considering a commitment to Alpine Space Ventures' new fund, whose co-founding partner is a SpaceX alumnus.
What does a defense veteran who bet against consensus for 30 years think?
Jon Kutler of Admiralty Partners served ten years in the U.S. Navy, moved into aerospace-and-defense investment banking in the early 1980s, and left Wasserstein Perella & Co. in 1992 to start his own firm. His former boss Bruce Wasserstein called him "an idiot" — the Cold War was over; defense spending was done.
Kutler's response: "If you look at human history, we're not a very peaceful species. Declaring the end of defense spending was absurd — I was willing to bet my own capital and time against that."
The thirty-year result: he sold the firm in 2002, pivoted to his family office, and today his portfolio includes rocket maker Firefly Aerospace, whose clients span Lockheed Martin and the U.S. Space Force.
What is a family office's real edge here?
Kutler argues that investing in frontier aerospace technology demands extreme patience — and family offices hold a structural advantage over traditional PE because they face no fixed-horizon return pressure.
He is equally direct about risk: a Mars trip is exciting, but the path to financial success for exploration companies is harder because federal spending is inherently unstable.
This means → the SpaceX IPO frenzy obscures a key risk in aerospace investing — volatility in federal spending and cuts to research funding could starve the pipeline of future startups.
Defense spending will be a recurring theme. It will ebb and flow with government priorities, but there will always be an end market there.
Jon Kutler
Founder, Admiralty Partners
(Interview with CNBC)
Content is for reference only, not financial advice.