BRC Group Reports $84.2M Gross, $70.4M Net Carried Interest in SpaceX
RILY•BRC Group's subsidiaries hold carried interest in SPVs that oversaw $233 million of client investments in SpaceX, producing an $84.2 million gross and $70.4 million net carried interest valuation at the $160.95 IPO price. Each $5 share price shift alters net proceeds by about $2.3 million.
1. Background on SpaceX Interest
Between 2018 and 2021, the company's wealth management units organized roughly $233 million of client investments in SpaceX through SPVs, with subsidiaries holding carried interest entitling them to a share of returns generated on these holdings.
2. Valuation Following IPO
Based on SpaceX’s closing IPO price of $160.95 per share on June 12, carried interest value stands at approximately $84.2 million gross and $70.4 million net after estimated expenses; each $5 move in share price shifts net proceeds by about $2.3 million.
3. Lock-Up and Future Realization Risks
All carried interest holdings are subject to lock-up restrictions that expire in stages through the remainder of the year, and final proceeds will depend on future market prices, expense adjustments, transaction costs, taxes, and SPV manager decisions.
