LBS alums present at International Astronautical Congress

According to American businessman Dylan Taylor “Everyone’s in the space industry. They just don’t know it yet.” He also said that a healthy capital ecosystem is required to support mankind’s endeavours in space. Two recent LBS Masters in Financial Analysis (MFA) graduates are of the same opinion, extolling the benefits of private equity (PE) investment in the European space sector at the recent International Astronautical Congress in Milan.

MFA graduates Leon Mokbel and Ludovico Pietro Boggero worked with the European Space Agency (ESA) during their London Business Challenge Week and continued working with the ESA after graduation. At the International Astronautical Congress, they were part of a team alongside Myriam Bouzerma and Kais Barmawi of the European Space Agency and Enrico Bronca of Bocconi University presenting strategic recommendations for Europe’s space sector.

Leon and Ludovico and the rest of the team spoke about the key challenges and opportunities associated with enabling private equity investment in the European new space industry.

While intrinsic and extrinsic factors such as regulatory uncertainty and risk perceptions threaten PE funds’ entrance in the space industry, the team identified six primary characteristics of the European New Space industry that are attractive for PE funds:

• Undervalued assets

• Commercial opportunities

• Sustainability synergies

• Improving exit opportunities

• Intersection with aerospace and defence

• Procurement dynamics.

The team’s strategic recommendations, therefore, are to:

• reward research and development and the ESG impact of space ventures through a tax incentive scheme to attract private investments

• offer space-specific co-investment facilities that can de-risk private investments and improve growth capital availability

• Improve anchor tenancy schemes and introduce a European space Special Purpose Vehicle framework to reduce legal and financial risks.