SpaceX employee group creates wealth management option ahead of IPO
More than 100 current and former SpaceX employees partnered with Choreo to offer low-fee wealth advisory services as the company prepares to go public.
3:09 PM
A group of current and former SpaceX employees has created a new low-fee wealth management advisory option in partnership with Chicago-based Choreo, according to people familiar with the agreement.
The employee group comprises more than 100 members and represents potential wealth of between $1 billion and $5 billion, the people said on condition of anonymity to discuss confidential agreements.
SpaceX is preparing for an initial public offering expected to occur this month. The company has reserved up to 5% of stock being sold in the IPO for purchase by "certain employees and persons" through a direct share program, according to an amended filing released Monday. Morgan Stanley, an underwriter in the offering, will manage the SpaceX direct share program.
The aerospace company is aiming to raise approximately $75 billion through its listing. SpaceX was valued at $1.25 trillion earlier this year when Elon Musk merged the company with xAI, his artificial intelligence startup.
The partnership between the SpaceX employee group and Choreo marks what sources described as a bold experiment in the wealth management industry, highlighting the scale of wealth creation expected from the IPO. The arrangement provides an alternative to traditional wealth advisory services for employees who will receive shares through the offering.