North Carolina Pension Fund Passes on SpaceX IPO Over Valuation Concerns
North Carolina State Treasurer Brad Briner has revealed that the state’s pension fund will not participate directly in SpaceX’s upcoming initial public offering, citing concerns that the company’s valuation has become too expensive.
Briner, who oversees approximately $200 billion in retirement assets for teachers, firefighters, police officers, and other public employees, said the fund remains cautious despite recognizing SpaceX as one of the world’s most innovative companies.
SpaceX Valuation Considered Too High
Speaking on CNBC’s Squawk Box, Briner explained that valuation has been a major concern for the pension fund for more than a year.
While praising Elon Musk’s leadership and SpaceX’s technological achievements, he stressed that investment decisions must remain focused on delivering stable, long-term returns for retirees.
According to Briner, a valuation approaching $1.75 trillion leaves limited room for attractive risk-adjusted returns.
“At some point, things are fully priced,” he said, noting that the pension fund targets consistent high single-digit annual returns rather than speculative growth opportunities.
SpaceX IPO Set to Raise $75 Billion
SpaceX is expected to price its IPO on Thursday before beginning public trading on Friday.
The aerospace company plans to sell approximately 555.6 million shares at $135 per share, raising around $75 billion and implying a market valuation close to $1.8 trillion.
The offering is expected to become one of the largest IPOs in market history and will be closely watched by investors worldwide.
North Carolina Focuses on Artificial Intelligence Investments
Instead of investing directly in SpaceX, North Carolina’s pension fund has allocated capital to leading artificial intelligence companies.
Briner revealed that the fund invested approximately $40 million in OpenAI and committed roughly $250 million to Anthropic earlier this year.
The Anthropic investment has already generated substantial gains, with the position now valued at more than $600 million.
Why Anthropic Stood Out
According to Briner, the pension fund viewed Anthropic as significantly undervalued when it made its investment.
He described the company’s AI technology as highly impressive and said the fund saw a unique opportunity that offered a more attractive risk-reward profile compared with SpaceX.
The strong appreciation in the investment has reinforced the fund’s conviction in the rapidly growing artificial intelligence sector.
SpaceX Exposure Will Come Through Index Funds
Although North Carolina will not buy SpaceX shares directly during the IPO, the pension fund is still expected to gain exposure to the company after it becomes publicly traded.
Briner explained that SpaceX will eventually become part of the fund’s public equity holdings through passive index fund investments.
As a result, retirees will still benefit from potential long-term growth in SpaceX, but without the pension fund taking a direct position at what it views as an elevated valuation.
Balancing Innovation and Valuation
The decision highlights the challenge facing institutional investors as some of the world’s most valuable technology companies approach record-breaking valuations.
While North Carolina’s pension fund remains optimistic about innovation in sectors such as aerospace and artificial intelligence, Briner emphasized that valuation discipline remains a critical component of protecting retirement assets and achieving sustainable long-term returns.
