For family offices, space investing is about defense and data, not Mars

SpaceX goes public this Friday. The investment arms of billionaires including Jeff Skoll and Pitt Hyde are set to profit from the offering. The family offices that backed SpaceX earlier told CNBC their space investing goes well beyond Elon Musk's company. They treat the sector as infrastructure and defense, not space tourism.

Gary Lauder, a cosmetics heir and venture capitalist, invested in SpaceX through a special purpose vehicle and two venture funds. He was drawn by Starlink's satellite technology. "I never dreamed of being an astronaut," he told CNBC. "It's just an important mode of communication."

Jason Blanck, who founded his family office in 2024, focuses on what he calls the picks and shovels of space: mission-critical hardware and data networks. "The public markets are focused heavily on debating rocket launch cadences, costs around flight development," he said. "From my perspective, managing permanent family capital, the real narrative has evolved."

Robin Lauber of Infinitas Capital bought into SpaceX through a secondary offering in early 2025. He cited Musk's track record and Starlink's success. He told CNBC the valuation was "reasonable" compared with the more than $1.75 trillion expected now. Lauber is weighing investments in European space companies like Isar Aerospace, a German launch provider. He is also looking at a new fund from Alpine Space Ventures, which counts a former SpaceX executive as a founding partner. "European sovereignty is a huge topic everywhere," he said.

Jon Kutler of Admiralty Partners, who spent a decade in the U.S. Navy before becoming an aerospace investment banker, has invested in Firefly Aerospace, a rocket maker with clients including Lockheed Martin and the U.S. Space Force. Kutler said family offices hold an edge over private equity because they can be patient. Aerospace companies require years to develop technology.

That patience matters because the sector carries real risks. Kutler warned that enthusiasm around the SpaceX IPO obscures swings in federal spending and cuts to research funding that could damage the startup pipeline. "There is a temptation because of what's going on right now to think that commercial space companies are the answer to everything," he told CNBC. "If you amortize everything out, it takes a long time."

AlphaScala's proprietary scores reflect the divergence within the sector. Lockheed Martin (LMT) carries an Alpha Score of 48 out of 100, a Mixed rating. Firefly Aerospace (FLY) scores 11 out of 100, a Weak rating. The contrast tracks the investor sentiment: established defense primes can weather spending cycles, while pure-play launch startups face higher execution risk.