Musk’s long-time backer is giving SpaceX stock to its investors
Valor Equity Partners is handing out stock to its LPs instead of cash returns.
Antonio Gracias, a longtime supporter of Elon Musk and a current board member of SpaceX, has decided to distribute a significant portion of his company Valor Equity Partners' SpaceX stock to its limited partner investors, according to a recent SEC filing. Valor Equity Partners had been a major investor in SpaceX, with entities controlled by Gracias owning over 500 million shares at the time of the company's initial public offering, making it the second-largest shareholder after Musk, who held over 6 billion shares.
Instead of selling off a portion of his shares and distributing the proceeds to LPs, Gracias opted to give away 8.5% of Valor's SpaceX holdings, which is estimated to be worth around $8.5 billion. While Valor still holds more than 460 million shares after the giveaway, transferring the shares could potentially provide LPs with tax benefits and prevent the company from flooding the market with a large number of shares, which could lead to a decline in price. SpaceX's stock has already experienced a 10% decline since its highly successful IPO.
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