VC agency Valor Fairness Companions, based by Antonio Gracias, a long-time Elon Musk backer and present SpaceX board member, has opted to easily give away a piece of its SpaceX inventory to its restricted accomplice traders, based on an SEC filing noticed by Bloomberg.
Valor made a killing on SpaceX after investing in it over a long time, with entities managed by Gracias proudly owning greater than 500 million shares on the time of the IPO. This was second only to Musk (who owned over 6 billion shares on the time). However as a substitute of cashing out and issuing returns to LPs, Valor handed over 8.5% of its holdings to them, value about $8.5 billion, Bloomberg estimates. Valor will nonetheless personal greater than 460 million shares after the giveaway, the SEC disclosure kind says.
Transferring possession of the shares might give these Valor restricted companions a tax benefit. Extra importantly, it avoids dumping an enormous tranche of shares into the open market. Such a dump might trigger a glut of accessible shares and a corresponding dip in worth. SpaceX is already down about 10% since its blockbuster IPO day.