Investment trusts: how to profit from the world’s most dynamic private companies
See table of trusts with exposure to SpaceX, ByteDance, Revolut and other potential IPOs.
2026 could be a big year for record-breaking IPOs, with some of the world’s most valuable private companies looking to list on the stock market.
Elon Musk has talked of an IPO for his rocket company SpaceX later this year that could value the company at $1.75 trillion, according to recent reports1. Meanwhile, other giant private companies are reportedly lining up to list on the public markets, with OpenAI valued at $840 billion in its latest fundraising, and TikTok owner ByteDance, which has a reported value of $550 billion.
“Investment trusts give investors access to these dynamic companies while they are still privately owned and rapidly gaining scale before they list on a stock market. Some of the companies looking to list this year have grown by hundreds of billions of dollars already. Investors don’t have to wait for these companies to IPO as investment trusts are particularly suitable for investing in hard-to-reach assets like private companies.”
Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC)
Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC), said: “Many companies are staying private for longer before deciding to float on the stock market. The average age of a company at IPO was just five years in 1999, but that had stretched to 14 years in 2024, according to data from Schiehallion.
“Investment trusts give investors access to these dynamic companies while they are still privately owned and rapidly gaining scale before they list on a stock market. Some of the companies looking to list this year have grown by hundreds of billions of dollars already. Investors don’t have to wait for these companies to IPO as investment trusts are particularly suitable for investing in hard-to-reach assets like private companies.”
The table below shows investment trusts with exposure to large private companies considering an IPO. The AIC has collated views from managers and representatives of the investment trusts which can be found below the table.
Investment trusts with exposure to potential IPOs
| Company | Investment trust | Portfolio weight |
|---|---|---|
| SpaceX | Edinburgh Worldwide Scottish Mortgage Schiehallion Fund Baillie Gifford US Growth RIT Capital Partners Monks Investment Trust HarbourVest Global Private Equity Pantheon International | 16.9% 15.2% 13.6% 11.8% 2.7% 1.1% 0.6% 0.1% |
| Databricks | Schiehallion Fund Baillie Gifford US Growth Scottish Mortgage HarbourVest Global Private Equity RIT Capital Partners | 4.5% 3.0% 1.4% 0.9% 0.5% |
| ByteDance | Baillie Gifford China Growth Schiehallion Fund Scottish Mortgage Fidelity China Special Situations Pacific Horizon Investment Trust Monks Investment Trust | 10.5% 7.8% 4.1% 3.9% 3.3% 1.2% |
| Stripe | Baillie Gifford US Growth Schiehallion Fund Scottish Mortgage Monks Investment Trust RIT Capital Partners | 5.3% 2.9% 2.5% 0.7% 0.6% |
| Anthropic | Schiehallion Fund Baillie Gifford US Growth Scottish Mortgage RIT Capital Partners Pantheon International | 2.6% 2.0% 1.0% 0.2% 0.1% |
| Revolut | Molten Ventures Schiehallion Fund Scottish Mortgage Pantheon International HarbourVest Global Private Equity | 10.6% 1.8% 0.8% 0.7% 0.5% |
Source: theaic.co.uk / Morningstar and investment trust managers. Latest available portfolio weights.
Manager views
James Budden, Head of Global Marketing at Baillie Gifford, which manages Baillie Gifford China Growth, Baillie Gifford US Growth, Edinburgh Worldwide, Monks, Pacific Horizon, Schiehallion Fund and Scottish Mortgage, said: “Baillie Gifford is an unconstrained long-term growth investor. Nearly 15 years ago we realised that many great growth companies were staying private longer and that we would miss some fabulous opportunities if we failed to access this stage of growth.
“Alibaba, bought by Scottish Mortgage, was our first investment of this type, and many have followed since. Indeed, if the investment case remains valid, we continue to hold post IPO.
“The closed-ended structure of investment trusts is ideal for managing private company investments. Back in the day, trusts were littered with unlisted holdings. Nowadays, the blend of public and private businesses offers attractive differentiation and allows investors to share in the success of unique businesses like SpaceX, first purchased at $31 and valued lately at $800. On top of that, costs are lower and liquidity higher than within other private equity vehicles.”
Dale Nicholls, Portfolio Manager of Fidelity China Special Situations, said: “We first invested in ByteDance in 2018, recognising the strength of its exceptional product innovation and rare ability among Chinese internet companies to build a genuinely global social media platform. Our closed-end structure gave us the flexibility to take a long-term view and, just as importantly, to add meaningfully to our stake in summer 2024 when valuations became overly depressed due to uncertainty surrounding TikTok’s US operations.
“My trust has invested in ByteDance in tranches with the first returning around 450% since 2018, and the second investment in 2024 returning just under 100%. For us, ByteDance remains a key portfolio holding, and we maintain strong conviction in its growing global relevance and durable, innovation-led growth.”
Ben Wilkinson, CEO of Molten Ventures, said: “As a FTSE 250 listed venture capital firm with an evergreen balance sheet, Molten enables public market investors to access private technology companies while they are still scaling. We take a long‑term, disciplined approach, backing category‑leading businesses, realising value when liquidity arises, and redeploying capital into the next generation of opportunities.
“Our investment in Revolut is a good example. It has grown materially in value with some proceeds already returned through partial realisations. As of 30 September 2025, our holding in Revolut was valued at around 18 times our original investment. We continue to see strong progress across the portfolio and remain disciplined in how we allocate capital, including reinvesting proceeds and share buybacks.”
Maggie Fanari, Chief Executive Officer of J. Rothschild Capital Management, investment manager for RIT Capital Partners, said: “Through its investment trust structure, RIT gives investors access to fast growing private companies such as SpaceX that are otherwise not available in public markets. Through our global network of specialist managers, we invest in private businesses most investors cannot ordinarily reach. SpaceX is now one of RIT’s top ten holdings, positioning us to benefit from future growth.
“In 2025, we added new investments in Anthropic and Databricks, increasing our exposure to areas where we see long-term winners emerging. Many leading AI-related companies remain private, making our long-standing presence in these markets a clear advantage.
“As private companies stay outside public markets for longer, typically much of their value growth occurs earlier in their life cycle. Our relationships allow us to invest at these early compounding phases, giving shareholders access to businesses that could become a ‘Magnificent Seven’ equivalent of the private markets long before most investors can participate.”
Richard Hickman, Managing Director of HarbourVest Partners, which manages HarbourVest Global Private Equity (HVPE), said: “Across HVPE’s portfolio we are seeing clear signs of momentum returning to private markets. Notably, a number of its most significant holdings, spanning different geographies and high potential sectors, are now reaching a level of scale and maturity where public markets are increasingly being considered as a potential route to liquidity.
“More broadly, transaction activity across the portfolio has picked up, reflecting both improving market conditions and the growing pressure on general partners to realise older investments following an extended slowdown. In this environment, the closed-ended structure of an investment trust is particularly well suited, allowing investors to gain diversified exposure to private companies while retaining flexibility as liquidity events emerge.”
- ENDS -
Notes to editors
- Sources for valuations:
- SpaceX could seek IPO valuation of over $1.75 trillion, Bloomberg says, Reuters, 27/02/26
- OpenAI valued at $840bn after record Amazon funding deal, The Times, 27/02/26
- Exclusive: ByteDance valued at $550 billion in proposed share sale by General Atlantic, sources say, Reuters, 25/02/26
- The Association of Investment Companies (AIC) represents a broad range of investment trusts and VCTs, collectively known as investment companies. The AIC’s vision is for closed-ended investment companies to be understood and considered by every investor. The AIC has 276 members and the industry has total assets of approximately £268 billion.
- For more information about the AIC and investment trusts, visit the AIC’s website.
- Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investment company shares, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all.
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