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Seraphim House Funding Belief (LSE:SSIT) was a penny share that was buying and selling at 29p simply over two years in the past. However after benefitting from the latest space-tech increase, the belief has escaped penny-stock territory, and now sports activities a 114p share worth and £270m market cap.
A 109% surge places Seraphim’s year-to-date efficiency forward of each Rolls-Royce (102%) and Nvidia (40%). So it has confirmed to be a hidden gem for eagle-eyed buyers.
Let’s check out this under-the-radar belief to see whether or not it is perhaps arrange for additional positive factors in 2026.
Surging area sector
Seraphim is a novel funding belief that targets early and growth-stage area expertise firms. These have “the potential to dominate globally and assist deal with humanity’s most urgent challenges like local weather change, communications, mobility and world safety“.
As rocket firms like SpaceX dramatically decrease the price of accessing area, extra satellites are being deployed. That is creating numerous industrial alternatives. Certainly, the belief says it filters via round 70 alternatives monthly!
One other large development taking part in out is rising world defence spending, significantly amongst NATO members. And area tech is turning into a precedence for a lot of governments and defence contractors.
In response to analysis supplier QuotedData, $10.4bn was raised by the sector within the third quarter of 2025 (a close to report).
The portfolio
Seraphim’s portfolio incorporates round 26 firms, with many having dual-use applied sciences that may serve each industrial and defence markets.
The highest 5 holdings in June have been ICEYE (Earth statement), D-Orbit (in-orbit providers), ALL.SPACE (floor terminals), HawkEye 360 (Earth statement), and LeoLabs (knowledge platform).
LeoLabs operates a community of ground-based radars that monitor satellites and area exercise in low Earth orbit. Given the rising variety of satellites in orbit, companies that assist stop area particles from colliding are more and more related.
Nevertheless, the standout performer within the portfolio has been ICEYE. This Finnish agency operates a constellation of specialized satellites that present high-resolution photographs of the Earth’s floor. Not like conventional digital camera satellites, the agency’s expertise can see via clouds, smoke, and complete darkness to trace actions in actual time.
Simply earlier than Christmas, ICEYE and defence large Rheinmetall signed a €1.7bn contract with the German military to supply space-based reconnaissance knowledge. The deal is anticipated to run for 5 years, with an choice to be prolonged.
It ought to end in a major uplift in ICEYE’s valuation, which was already €2.4bn at its final financing spherical in September. The information despatched Seraphim inventory surging above 100p for the primary time since April 2022.
What about 2026?
The flip facet to ICEYE’s ballooning valuation is that it now makes up over a 3rd of the portfolio. So if something went unsuitable on the satellite tv for pc maker, it will have an outsized detrimental impression on Seraphim’s web asset worth (NAV).
Talking of which, the earlier chunky NAV low cost has narrowed to 4.6%. So it now appears far much less of a discount than in mid-2023 when the low cost was close to 70%.
However, I nonetheless suppose the inventory deserves nearer consideration. In 2026, SpaceX is anticipated to go public at some mammoth valuation, probably tempting a few of Seraphim’s non-public holdings to additionally checklist (together with ICEYE). This might see it crystalise positive factors, as occurred in 2025 with AST SpaceMobile.
As such, I stay optimistic in regards to the inventory in 2026, and it’s on my radar.
