D1 to win $20bn bet on SpaceX IPO

The IPO could see massive windfalls for many early investors like D1.

New York-based hedge fund D1 Capital Partners is expected to be among the biggest winners when SpaceX goes public later this year.

The fund, run by Dan Sundheim, first invested in SpaceX in 2020, when the company was valued at around $36 billion, and if the IPO goes ahead at the planned $1.75 trillion, then D1's stake could be worth as much as $20 billion. Sundheim's firm currently manages around $35 billion in total.

While details of the IPO are still being ironed out, Elon Musk is reportedly considering a June date for the IPO, although people close to the matter say this may change.

For years, Musk has expressed his preference to keep SpaceX private, however the company's expansion into AI, Starlink, and Starship development are likely driving the need for huge amounts of capital; something an IPO could provide. Indeed, the rocket company has discussed raising as much as $75 billion through the IPO.

Fellow hedge fund Darsana Capital Partners is also in the running for a windfall. The fund initially invested in SpaceX in 2019 when Musk's company was valued at around $33 billion and then proceeded to take part in several additional financing rounds. Following an IPO, the fund's stake could be worth as much as $15 billion.

SpaceX has deployed the immense amount of capital invested in it successfully over the last few years, launching satellite internet service Starlink, which contributed more than half of the group's $18.7 billion in revenue last year. Musk has also leveraged other wings of his empire to boost SpaceX's valuation; namely, through a series of deals with tech giant X and xAI.

Musk has also obtained the right to buy coding start-up Cursor for $60 billion, a deal that is reportedly planned for 30 days after the IPO, and struck a deal to lease surplus computing power to AI group Anthropic for $1.25 billion a month through May 2029.

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