Scottish Mortgage Investment Trust, one of the UK’s best-known investment trusts, is planning to increase its investments in private companies as it continues its strategy of backing future global technology leaders.
The trust, which is managed by Baillie Gifford, has already invested in several major technology companies including Tesla, Nvidia, and SpaceX.
To expand this strategy, the trust is asking shareholders for approval to modify its investment policy so it can invest more money in private businesses.
Plan to Invest an Additional £250 Million
Under the proposed changes, Scottish Mortgage would receive permission to invest up to £250 million more in private companies.
Currently, the trust has a policy limiting private investments to 30% of its total assets. However, the value of its private holdings has increased recently due to rising valuations and share buybacks, which has pushed the proportion above that level.
One of the main reasons is the rapid increase in the value of SpaceX, the private aerospace company founded by Elon Musk.
As of 31 December 2025, SpaceX accounted for 15.1% of Scottish Mortgage’s total assets, compared with 8.2% just one month earlier, following a major upward revision of its valuation.
Why the Trust Is Investing More in Private Firms
Investment experts say the trust’s strategy focuses on identifying companies that could become global leaders in the future.
According to Dan Coatsworth, Head of Markets at AJ Bell, Scottish Mortgage often looks for opportunities before companies list on stock markets.
He explained that the trust frequently invests in businesses during their early growth stages and then continues supporting them through multiple funding rounds.
Many technology firms now choose to remain private for longer periods rather than going public quickly, meaning investors who want early exposure must invest before companies reach the stock market.
Growing Interest in Private Technology Companies
Interest in private investments has increased again in recent years, partly due to major technology developments such as artificial intelligence.
Companies including Anthropic and OpenAI have gained significant attention for their work in AI technology. These firms, along with SpaceX, are widely expected by market analysts to eventually launch stock market listings in the future.
If those companies go public, early investors like Scottish Mortgage could potentially benefit from strong returns.
Risks of Investing in Private Companies
Despite the potential rewards, private investments also carry risks.
Unlike publicly traded companies, private firms do not regularly disclose detailed financial information. Their valuations can also change less frequently, which may create uncertainty for investors.
Another challenge is liquidity, as private investments cannot easily be sold quickly compared with shares listed on stock exchanges.
Because of these risks, analysts believe Scottish Mortgage is asking shareholders for only a modest increase in its private investment limit rather than a major expansion.
Possible Impact of a SpaceX Stock Market Listing
A potential stock market listing for SpaceX could also change the trust’s exposure to private companies.
If SpaceX launches an initial public offering (IPO), its shares would become publicly traded, which would automatically reduce the percentage of private investments held by Scottish Mortgage.
Since SpaceX currently represents a significant portion of the trust’s private holdings, such a move could significantly shift the structure of its investment portfolio.
Shareholders to Vote in April
The proposed changes to the investment policy will be discussed at a general meeting of shareholders on 10 April.
If investors approve the plan, Scottish Mortgage will gain more flexibility to invest in promising private businesses, particularly in fast-growing technology sectors.
The decision will be closely watched by investors as the trust continues to position itself to identify the next generation of global technology leaders.
