UK private investors are closely monitoring the potential IPOs of OpenAI and Anthropic, two of the most eagerly awaited offerings in recent years. With OpenAI targeting a fourth-quarter launch and Anthropic eyeing a possible October listing, the question is: how can UK investors gain exposure?
Direct investment in these IPOs may be difficult. SpaceX, another significant player expected to list on the Nasdaq, is reportedly considering a June 12 debut. However, uncertainty remains about whether allocations will be available to international investors, particularly those in the UK. If SpaceX limits its offerings to US-based buyers, UK investors might only access shares through the secondary market after trading begins.
One practical option for UK investors is through London-listed investment trusts, which allow investments in private companies unlike traditional open-ended funds. The Scottish Mortgage Investment Trust, the largest in the UK and managed by Baillie Gifford, holds about 19% of its net assets in SpaceX. This position has surged from an initial $200 million investment to around $3.3 billion. The trust also maintains a stake in Anthropic, which now represents roughly 2.5% of its net assets following a recent revaluation.
In addition to Scottish Mortgage, several other Baillie Gifford trusts offer exposure to both SpaceX and Anthropic. Edinburgh Worldwide, Baillie Gifford US Growth Trust, and Schiehallion, a dedicated private equity vehicle, all include these companies in their portfolios. Schiehallion notably lists SpaceX as its top holding, with Anthropic recently increased to 7.2% of its assets. RIT Capital Partners also acquired a smaller stake in SpaceX in late 2024.
Investors should be mindful of the dilution factor associated with these investment trusts. Since SpaceX and Anthropic are part of a broader portfolio, any significant revaluation upon listing would be spread across the entire fund, potentially limiting individual returns. Notably, no major UK investment trust currently holds shares in OpenAI.
For those seeking broader exposure, including OpenAI, options are more limited and typically involve US-domiciled investment vehicles. The ARK Venture Fund, managed by Cathie Wood, holds substantial stakes in all three companies: SpaceX comprises 17% of its assets, with OpenAI and Anthropic also prominently featured. However, this fund is available only to US investors, requiring a minimum investment of $500, a 2.9% expense ratio, and quarterly liquidity constraints, complicating access for UK investors.
Several US-listed ETFs have surfaced that comply with SEC rules allowing up to 15% of assets in illiquid investments. The ERShares Private-Public Crossover ETF lists SpaceX as its top position, while the KraneShares AI and Technology ETF includes both SpaceX and Anthropic. UK investors who can access US markets through their brokerage accounts might consider purchasing these ETFs, although they will face challenges related to currency risk and higher fees associated with international investments.
As the IPO timelines for OpenAI and Anthropic approach, UK investors encounter a blend of opportunities and challenges. Investment trusts provide a more direct route to SpaceX and Anthropic, but those looking to diversify their portfolios must consider the benefits of these trusts against the potential dilution of individual holdings while also exploring US-listed vehicles for a broader range of exposure.
