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 companion traders, based on an SEC filing noticed by Bloomberg.
Valor made a killing on SpaceX after investing in it over many years, with entities managed by Gracias proudly owning greater than 500 million shares on the time of the IPO. This was second solely 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 may give these Valor restricted companions a tax benefit. Extra importantly, it avoids dumping a large tranche of shares into the open market. Such a dump may trigger a glut of obtainable shares and a corresponding dip in worth. SpaceX is already down about 10% since its blockbuster IPO day.