The world’s biggest sovereign wealth fund is exploring the possibility of backing Elon Musk’s space venture, according to a senior fund official.
Norway’s Government Pension Fund Global, valued at $2.2 trillion, is currently evaluating whether to participate in SpaceX as the rocket manufacturer prepares for what could become history’s largest stock market debut.
Deputy CEO Trond Grande confirmed to Reuters Thursday that discussions are underway with the aerospace company. When questioned about whether the fund had been contacted regarding potential investment opportunities, Grande responded: “We have dialogue with companies, right? So, we also have dialogue with SpaceX.”
Pressed further on whether the fund was considering the investment opportunity, Grande stated: “That is what we are doing.” He provided no additional specifics about the potential deal.
SpaceX, owned by the world’s wealthiest individual Elon Musk, is planning a $1.75 trillion public offering anticipated for this summer, which would dwarf previous IPO records.
Grande’s comments followed the fund’s announcement of substantial first-quarter losses totaling 636 billion Norwegian crowns, equivalent to $68.4 billion, attributed to Middle Eastern conflict impacts on international markets.
The military action that commenced with coordinated U.S. and Israeli operations against Iran in late February contributed to the S&P 500’s steepest quarterly drop since 2022.
Norges Bank Investment Management, the fund’s operator which maintains approximately half its holdings in American markets, recorded a negative 1.9% return during the January through March timeframe.
However, market improvements in April have already compensated for the earlier quarterly setbacks following ceasefire announcements, Grande noted. He emphasized the fund isn’t treating the conflict as an opportunity for discounted stock purchases.
“We’re not doing any big changes to the portfolio or how we invest just on this one,” Grande explained. “It’s very unpredictable.”
The Norwegian fund channels revenues from the country’s petroleum and natural gas sectors into international investments spanning equities, bonds, real estate, and renewable energy initiatives.
Grande also addressed concerns about artificial intelligence’s potential disruption of software companies, which has created ripple effects in private credit and equity markets that previously invested heavily during low-rate periods.
The fund is closely monitoring these developments for signs they might trigger broader financial instability, Grande said.
“It’s always a worrying sign when people who want to redeem some of their units are not able to redeem them in full,” Grande observed. “That gives you a signal that there might be something here. So it’s definitely a watch point: to what extent it could become systemic.”
