An investment Ontario teachers made nearly seven years ago could soon become one of the most successful bets in Canadian pension fund history. Back in 2019 the Ontario Teachers’ Pension Plan (OTPP) invested C$300 million (US$220 million) in SpaceX.
Now, with an initial public offering (IPO) on the horizon at a valuation of up to US$1.75 trillion, that original investment could be worth as much as C$16.2 billion (US$11.6 billion).
A Small Investment Turns Into a Massive Opportunity
The investment was notable for another reason – it was the first deal completed by Ontario Teachers’ newly launched technology-focused investment division, then known as the Teachers’ Innovation Platform (TIP), now operating as Teachers’ Venture Growth (TVG).
At the time, Ontario Teachers described SpaceX as a company with a proven ability to disrupt the space industry while highlighting the future potential of Starlink.
“SpaceX is the world’s leading private space launch provider, and we are excited to work with the company in the next phase of its growth as it rolls out its Starlink satellite network,” said Olivia Steedman, Senior Managing Director of TIP in 2019.
That optimism appears to have paid off. When Ontario Teachers first invested, SpaceX was valued at roughly US$33 billion. Since then, the company has grown into one of the world’s most valuable private companies. Starlink has expanded to over 12 million customers globally, while SpaceX has solidified its dominance in commercial launches and government space and defence contracts.
More Than Just Rockets and Starlink
Earlier this year, the company also acquired xAI, which is now pulling in over $2 billion per month from just two AI compute capacity deals with Anthropic and Google.
Based on the reported IPO valuation, Ontario Teachers’ initial stake alone could be worth nearly 53 times its original investment. The pension plan has also disclosed that it increased its position in SpaceX multiple times over the years, meaning its total holdings could be worth considerably more.
No Rush to Sell
Despite the eye-popping numbers, Ontario Teachers may not rush to cash out. The pension fund has previously indicated that an IPO does not automatically represent an exit opportunity, particularly if SpaceX continues to demonstrate significant long-term growth potential.
In a statement to the Globe and Mail, an Ontario Teachers spokesperson said the fund “remain[s] enthusiastic about the company.”
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