Danish pension fund blacklists SpaceX, says way overvalued with bad governance
7 hours ago
- #Corporate Governance
- #SpaceX
- #IPO Investment
- AkademikerPension, a Danish pension fund managing $25 billion, will not invest in SpaceX's IPO or secondary-market shares, citing overvaluation and poor governance.
- The fund criticizes SpaceX's governance, noting Elon Musk's 85% voting control via dual-class shares, which limits shareholder influence and exempts the company from some Nasdaq rules.
- Larger U.S. pension funds managing over $1 trillion have also expressed concerns about SpaceX's 'extreme' governance structure in a joint letter to Musk.
- AkademikerPension has a history of activist divestment, including selling Tesla shares over governance issues and offloading U.S. Treasuries due to fiscal concerns.
- Despite institutional objections, SpaceX's IPO demand is expected to remain strong from retail investors, though governance issues may affect long-term institutional ownership and valuation.