OTPP Stands to Reap Multi Billions From SpaceX and Anthropic IPOs
The Ontario Teachers’ Pension Plan (OTPP) stands to reap one of the most extraordinary returns in pension fund history thanks to a bold 2019 investment in SpaceX.
According to a recent report from The Globe and Mail, the Toronto-based fund invested roughly $300 million CAD (~$220 million USD at the time) in Elon Musk’s space company as its inaugural deal through the Teachers’ Innovation Platform.
At SpaceX’s anticipated $1.75 trillion IPO valuation, set for a mid-June debut on Nasdaq under ticker $SPCX, that stake could now be worth up to $11.6 billion USD. This would represent a roughly 50x return and easily become OTPP’s most successful single investment ever.
The fund manages $279 billion in assets for approximately 346,000 working and retired teachers in Ontario, potentially delivering an average boost of around $33,500 per member if fully realized.
SpaceX has filed its S-1 and plans to price shares at $135 each, aiming to raise a record $75 billion in what would be the largest IPO in history, surpassing Saudi Aramco. The company reported $18.67 billion in revenue for 2025, driven primarily by Starlink satellite internet growth and NASA contracts, though it continues to post significant losses tied to ambitious R&D in Starship and AI initiatives.
Important pieces moving forward include:
- Starlink Expansion: The satellite broadband service is scaling rapidly, targeting global connectivity, especially in underserved rural and remote areas. This segment offers massive recurring revenue potential as numbers climb.
- Starship and Reusability Leadership: SpaceX’s fully reusable Starship aims to slash launch costs dramatically, enabling frequent missions, Mars ambitions, and lucrative government/defense contracts. Success here could unlock exponential growth.
- AI and Diversification: Recent moves, including ties to xAI, position SpaceX in high-growth AI infrastructure, broadening beyond traditional aerospace.
- Validation Scrutiny: While the $1.75 trillion target excites investors, analysts like Morningstar value the company closer to $780 billion, citing high multiples (around 90x trailing revenue) and execution risks. A 180-day lockup period will prevent early investors like OTPP from selling immediately post-IPO.
The irony has not been lost on observers. Ontario’s government previously canceled a Starlink rural internet contract amid political tensions involving Musk, yet the pension fund’s savvy investment, made when SpaceX was valued around $33-36 billion, and Starlink was nascent, delivers outsized gains independent of politics.
For OTPP, this windfall strengthens its already solid 111 percent funding ratio and underscores the value of patient, innovation-focused capital allocation.
For SpaceX, the IPO marks a new chapter: greater transparency, access to public markets for talent retention and growth capital, and heightened pressure to deliver on its multi-planetary vision.
All eyes are fixed on whether SpaceX can justify its lofty valuation through sustained execution. For Ontario teachers, the returns are already stellar, but SpaceX, like other Musk companies in the past, has plenty of things to prove. Perhaps the most ideal person for the job is at the helm, hoping to bring the company to a massive valuation.
Alright, the moment has finally arrived, and everyone is very excited about the SpaceX IPO, especially the active and retired members of Ontario Teachers' Pension Plan.
On Friday morning around 10:15, SpaceX shares will start trading, opening up at $135 and closing at God knows where!
To paraphrase President Trump's hyperbole, this is the biggest IPO mankind has ever known.
Except I'm not kidding, this will be huge, a lot of people have invested in SpaceX's IPO and everyone is hoping when the lockup period ends in six months, they'll walk away with a fortune.
I'm not kidding, it's not only institutions, it's retail money too.
A friend of mine invested USD$500,000 in a fund that is invested in the IPOs of SpaceX, Anthropic, OpenAI and others.
But Ontario Teachers' Pension Plan invested in SpaceX back in 2019, in the early days, which is why it now stands to gain massively.
Olivia Steedman and her Teachers' Venture Growth team have done a wonderful job investing in SpaceX, Anthropic and other great growth companies.
Incredibly, after the SpaceX IPO, they stand to make another windfall gain when Anthropic goes public.
In venture capital, you're lucky if you hit one grand slam every 25 years.
Here, Teachers' is going to hit two of them and they have other great companies in their portfolio.
Just so you understand, most pension funds lose money in venture capital, for every one huge winner, there are 100 losers.
This is why Olivia Steedman and her team deserve all the credit, they don't just sit on their laurels, they actively seek new investments that are going to be tomorrow's leading tech companies.
So how did OTPP invest in SpaceX?
Interestingly, yesterday, Nicole Musicco, CalPERS' former CIO and co-founder and managing partner of Square Nine Capital who worked many years at Teachers', posted this on LinkedIn:
Some of the most rewarding moments of my career have been when I could share work related experiences with my kids Sofia M. and Matteo Musicco. I was recently reminded of one such memory by my friend and mentor Steve Drobny. Circa August 2018, Steve arranged a diligence trip to Silicon Valley for OTPP to meet a number of up and coming companies to consider investing in...and I brought my son along. OTPP went on to make that investment in SpaceX in 2019, and I am certain they are thrilled about that today! I am most happy that my son got to be a small part of that investment history. Better than any lesson he would have got in a classroom!
Nicole confirmed it was Steve Drobny who introduced OTPP to SpaceX (Elon Musk) and OpenAI (Sam Altman), but they didn't invest in the latter back then.
Talk about having the right relationships at the right time.
Anyway, tomorrow is one for the history books. Sit back and enjoy the show!
I realize the valuations don't make sense, there is a lot of hype and froth, but at the end of the day, it's Elon Musk and his vision that investors will be betting on.
And if you think Teachers' is making a killing on SpaceX, read this article which explains how private equity investor Antonio Gracias stands to pocket nearly $90 billion from his sizable bet on Elon Musk's marquee company.
He lent Elon Musk $1 million, saved SpaceX from bankruptcy, and now stands to collect $90 billion or more tomorrow (on paper).
Talk about the greatest investment ever!!
Lastly, Elon Musk will become the world's first trillionaire. Trillionaire!
Let that sink in. We live in interesting times!
Below, Elon Musk’s SpaceX will begin trading with a price set at $135 per share, giving the company a valuation of $1.77 trillion and making it the largest-ever stock debut. NBC News’ Allie Canal explains.
Next, CNBC's Jim Cramer discusses the day's market action, SpaceX's IPO ahead of its debut on Friday and more.
Lastly, Ray Wang, Constellation Research chairman and AI Forum co-founder, joins 'Squawk Box' to discuss the latest market trends, state of the tech sector, upcoming tech IPOs, and more.
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