The Ontario Teachers’ Pension Plan (OTPP) is sitting on what could be a huge payday from an early bet it made on Elon Musk’s SpaceX, which is gearing up for a blockbuster IPO next week.
According to a report by The Globe and Mail, the Toronto-based pension fund could see its original investment balloon into an $11 billion US ($15.3 billion CAD) windfall if the rocket maker hits its target valuation of $1.75 trillion US once it lists on the Nasdaq. The OTPP manages $279 billion in net assets.
The fund has publicly acknowledged its tie to SpaceX, but it’s never officially said how big its stake is. That said, two anonymous sources familiar with the matter who spoke to The Globe confirmed the initial 2019 investment was around $220 million US (roughly $306 million CAD in today’s dollars). That investment was made by a then-new division called Teachers’ Venture Growth, which focuses on backing late-stage startups. Back in 2019, SpaceX’s Starlink satellite internet was just starting to launch.
Olivia Steedman, the executive managing director and global head of Teachers’ Venture Growth, confirmed in a statement that the fund has grown its stake over the years.
“Teachers’ Venture Growth initially invested in SpaceX in 2019 and, given the strong performance of the SpaceX team and their consistent execution against ambitious objectives, we have added to our position several times since,” Steedman said. “It has been a rewarding investment, and we remain enthusiastic about the company.”
SpaceX is aiming to price its IPO shares at $135 US each. If that target valuation holds once public trading kicks off, the block of shares the pension plan bought in 2019 alone could be worth up to $11.6 billion US. And that figure doesn’t even count the extra money the fund poured in during later financing rounds.
Even with that kind of potential windfall, the fund might not cash out right away. Existing institutional shareholders are locked into strict agreements that block stock sales for 180 days after trading begins on June 12.
On top of that, the organization has signalled it sees SpaceX as a long-term hold rather than a quick flip. In a March interview with The Globe, Gillian Brown, the chief investment officer for public and private investments, said the upcoming listing isn’t necessarily “a target exit point.” Fund executives are reportedly weighing further growth opportunities tied to SpaceX, especially after its acquisition of Musk’s AI venture, xAI, earlier this year.
Last year, Premier Doug Ford cancelled a $100 million Starlink contract in retaliation for U.S. tariffs, keeping the cost of the cancellation fee secret from taxpayers. Now, 346,000 active and retired Ontario teachers are set to reap a massive windfall from that very same company.
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