Boston Global Wealth  ·  Private Markets  ·  Space & Defence
Growth · Strategic

Space and Defence for Wholesale Investors

"Sovereign capability and the commercialisation of space."
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Two long-run themes sit inside one thesis. Defence spending is rising across most major economies as the post-Cold-War order recedes, and in Australia specifically through AUKUS and the Defence Strategic Review. At the same time, the falling cost of launch has commercialised low-earth orbit for telecommunications, earth observation and navigation, increasingly through dual-use platforms that serve both civil and defence customers. Both point to long-duration, government-anchored demand for the right technology suppliers.

Boston Global Wealth clients access the theme through listed thematic funds for liquid, diversified exposure, and through selective private space-technology positions sourced via the Boston Global Group network. It is a growth allocation with meaningful political, regulatory and execution risk, and defence exposure will not suit every investor's mandate. This page is general advice only.

What it is

Listed and private exposure to space technology (satellite infrastructure, launch, earth observation, in-space services), defence systems (autonomous platforms, sensors, electronic warfare, cybersecurity), and dual-use technologies serving both civil and defence customers.

Why investors consider it

Defence budgets across NATO, the Indo-Pacific and Australia are committed to multi-year increases, and falling launch costs have opened commercial space models that were not viable a few years ago. Together these create durable demand for capable suppliers, though outcomes still depend on programs and policy.

How the exposure is built

Through listed thematic funds on the approved list for liquid, diversified exposure to the broader defence-technology universe, and through selective venture and direct positions in space-technology companies sourced through the Boston Global Group network.

How BGW manages the risk

A liquid, diversified core through listed thematics, with any private space-technology positions carefully sized given their long development cycles and capital intensity.

Where it fits

A thematic growth allocation for investors comfortable with the sector, sized within a diversified portfolio. Investors with mandates that exclude defence can hold the space and dual-use elements only.

Risks to weigh

Space and defence carries a distinctive mix of risks. The main ones to weigh:

  • Political and budget risk. Demand depends heavily on government budgets and priorities, which can change with the political cycle.
  • Regulatory and export-control risk. Defence and space technologies are subject to strict export and security controls.
  • Program and execution risk. Contracts and technology development can slip, be cut, or fail to deliver.
  • Capital intensity and long cycles. Space in particular is capital-hungry with long timelines to revenue.
  • Concentration and volatility. Thematic exposure can be volatile and concentrated in a handful of names.
  • Mandate and ethical considerations. Defence exposure may not align with every investor's values or mandate.

Frequently asked questions

What is space and defence investing?
It means backing companies that build space technology (satellites, launch, earth observation) and defence systems, plus dual-use technologies that serve both civil and defence markets, through listed thematic funds or private positions.
Why invest in defence now?
Because defence budgets across major economies, including Australia through AUKUS, are committed to multi-year increases, creating durable demand. That said, defence exposure will not suit every investor's mandate, and this is general information rather than a recommendation.
How can Australian wholesale investors access it?
Through listed thematic funds for liquid, diversified exposure, and through selective private space-technology positions sourced via the BGW network.
What are the risks?
Reliance on government budgets, strict export controls, program and execution risk, capital intensity, thematic volatility, and mandate or ethical considerations. Returns are not guaranteed and capital is at risk.
Who can invest in these strategies?
The private strategies discussed here are generally restricted to wholesale or sophisticated investors as defined under section 708 of the Corporations Act.

General advice only. This information does not consider your objectives, financial situation or needs; consider the relevant disclosure document and seek personal advice before investing. Any target returns are indicative only and not guaranteed. Past performance is not a reliable indicator of future performance. Private market investments carry liquidity, valuation and concentration risks and are generally restricted to wholesale or sophisticated investors under section 708 of the Corporations Act.

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