Trump\u2019s decision revealed to European governments the extent of their reliance on American technology, including the use of satellites to detect Russian bomber launches and to guide precision-guided weapons.\u00a0<\/p>\n
\u201cThere was a rapid realisation that Europe and the UK don\u2019t have anything in this area, because they\u2019ve exclusively relied on the US. So when it switched off, it became really acute that you actually need this capability<\/a> to manage the theatre of war,\u201d Boggett said.<\/p>\n ICeye, a Finnish company recently valued at $2.8 billion and Seraphim\u2019s largest holding, has been one of the principal beneficiaries<\/a>. The company operates satellites that can be used in climate monitoring and insurance as well as defence and intelligence.\u00a0<\/p>\n Governments in Denmark, Finland, Poland, Germany, Portugal and Switzerland have chosen ICeye to develop their own satellite network in the past year. Revenue at ICeye more than doubled to about $250 million last year, and the company reported a contracted backlog of $1.5 billion, which it said reflected \u201csustained sovereign intelligence demand\u201d.\u00a0<\/p>\n Boggett said that many of the fund\u2019s holdings were \u201cdefence companies by accident\u201d, having initially focused on commercial use before repositioning to take advantage of the demand for sovereign space capabilities.\u00a0<\/p>\n This momentum has been highly supportive of the fund\u2019s market position. After years of trading at a persistent discount to its net asset value, the trust transitioned into a premium this year, which rose to 34 per cent in April. Its share price has gained 83 per cent so far this year, cementing its place as one of the top-performing stocks on the FTSE All-Share Index.<\/p>\n Looking beyond defence, Boggett said the space sector more broadly was at an \u201cinflection point\u201d thanks to the significant reduction in launch costs and growing recognition of its potential to support a wide range of sectors.\u00a0<\/p>\n Space X\u2019s development of Falcon 9 reusable rockets has helped cut launch costs by 95 per cent over the past decade, according to McKinsey. Boggett said that Space X\u2019s new rocket, Starship, could help bring down costs to a tenth of that price and support the launch of much larger structures. \u201cThat could potentially start to open up the ability to build mega structures in the space environment,\u201d he said, pointing to data centres<\/a>, solar farms, communication towers and even manufacturing plants.\u00a0<\/p>\n \u201cDefence accounts for 80 per cent of revenues across our portfolio, but in five years time, it will have flipped back to being only 20 per cent because the rest will come from the commercial customers across these sectors,\u201d Boggett said.\u00a0<\/p>\n It may seem like science fiction, but investors are interested. Last week Seraphim raised \u00a3137 million in the first tranche of its C share issue, including \u00a345 million from retail investors. This was the largest fundraise for a listed investment trust since 2023, and the largest UK retail capital raise in more than five years.\u00a0<\/p>\n![\"ICEYE](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/05\/6b802a89-e53f-4302-8588-9d13bcea4ed3.jpg\")
The satellite operator ICeye is Seraphim\u2019s largest holding<\/p>\n![\"SpaceX](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/05\/f80f3ec4-dba6-4f30-93e4-22f53577129f.jpg\")
A Falcon 9 rocket launch seen from the Sea of CortezMichael Nolan\/robert harding\/Getty images<\/p>\n