Asset manager Brookfield (BN) said that it owns $2 billion worth of pre-IPO shares in Elon Musk’s SpaceX. About half of that SpaceX position sits on Brookfield’s balance sheet, while the rest is held by other affiliated entities. The timing is notable because SpaceX has reportedly filed confidentially for an IPO that could happen in June, with Bloomberg previously suggesting that the aerospace company is targeting a valuation of more than $2 trillion.
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The SpaceX investment was not the only high-profile private-market bet that Brookfield discussed in its first-quarter earnings report. The firm also said it committed $500 million to Figure, a developer of humanoid robots, and invested in Hark Labs. Together, those investments show that Brookfield is continuing to put money behind some of the biggest themes in private markets, such as rockets, satellites, AI, and robotics.
Brookfield has also had exposure to Musk-linked companies for several years. In 2022, its now-closed Brookfield Growth division invested $250 million to help fund Musk’s buyout of Twitter, which is now known as X. At the time, that was the largest check Brookfield Growth had ever written, and it stood out from many of the unit’s other investments. Brookfield later shut down the venture division and moved some of its assets and staff to Pinegrove Capital.
Is BN Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BN stock based on five Buys assigned in the past three months, as indicated by the graphic below. Furthermore, the average BN price target of $58.70 per share implies 21.8% upside potential.
