The investment trusts tapping the next wave of IPOs

The names accessing the next SpaceX.

4th November 2026 10:21

by Dave Baxter from interactive investor

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The blockbuster initial public offering (IPO) for Space Exploration Technologies Corp Class A (NASDAQ:SPCX) has undoubtedly been one of the major market events of the year.

For one, it allows investors to access one of the more exciting companies out there, after much anticipation has built up.

But the IPO also helped demonstrate, via names like Scottish Mortgage Ord (LSE:SMT), that a handful of investment trusts can build stakes in promising companies before they go public – and in some cases profit handsomely by doing so.

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Company flotations linked to the artificial intelligence (AI) trade have prompted fresh IPO hype.

But beyond those well-known names, it’s worth asking which investment trusts hold other companies viewed as IPO candidates too.

We should caveat that such companies will not definitely IPO – such plans are often rumoured or hinted at by the business itself, but can easily be shelved or pushed back.

But a potential IPO could provide a performance boost for a trust – as we saw with SpaceX. It can also free up cash for a trust to plough into fresh ideas.

The trusts holding IPO candidates

If we look beyond the AI theme, a handful of companies are still viewed as IPO candidates.

Databricks, which offers a platform for data analysis, is reported to be eyeing an IPO, although this could be delayed to 2027 to avoid it competing with the blockbuster flotations of this year.

The names with the most prominent exposure to SpaceX ahead of its flotation were Baillie Gifford vehicles, from Scottish Mortgage to Baillie Gifford US Growth Ord (LSE:USA), Schiehallion Fund Ord (LSE:MNTN) and Edinburgh Worldwide Ord (LSE:EWI).

The company’s focus on growth businesses, and its penchant for private companies once again shines through here.

Databricks is one of the top 10 holdings in Schiehallion, the Baillie Gifford fund dedicated to private companies.

It accounts for 4.2% of the fund. It’s also a slightly smaller position for Baillie Gifford US Growth.

At the foot of the MNTN

With its focus on private businesses, Schiehallion gives us a sense of some of the pre-IPO businesses we might invest in via the Baillie Gifford stable.

Beyond Databricks, SpaceX and another 2026 IPO story, the Italian company Bending Spoons SpA (NASDAQ:BSP), the fund’s top 10 holdings list includes challenger bank Revolut, plus the TikTok owner ByteDance.

Both have previously been touted as potential IPO stories.

The portfolio also includes Stripe, the payments processor subject to plenty of IPO speculation at the very least.

Stripe is a bigger position for Baillie Gifford US Growth, accounting for around 7% of the portfolio.

Beyond BG

But it’s not all about Baillie Gifford, with a handful of other funds delving into pre-IPO stories.

Take Molten Ventures Ord (LSE:GROW) as one example.

It has a position in Revolut, plus another in satellite company ICEYE, which is also a major holding for Seraphim Space Investment Trust Ord (LSE:SSIT) and is viewed as a potential IPO candidate eventually.

The private equity trusts can sometimes benefit from IPOs, as HarbourVest Global Priv Equity Ord (LSE:HVPE) did with Shein Global Holdings Ltd Class B (SEHK:625).

We also have funds like RIT Capital Partners Ord (LSE:RCP) that partly fish in private markets and can end up with some exposure to exciting IPOs.

RIT Capital was one of the names to have an insider stake (which admittedly was not huge) in SpaceX before it listed.

Its finally worth adding a note of caution: trusts with big positions in companies that IPO are usually subject to a lock-up before they can sell.

That does leave them exposed to plenty of stock market volatility, as we have seen with Scottish Mortgage and its position in SpaceX.

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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