JPMorgan hosts investor event with Elon Musk presenting directly to billionaire clients; BofA, Morgan Stanley also hold briefings with SpaceX executives, touting differentiated wealth management

The SpaceX logo. [Reuters]
The SpaceX logo. [Reuters]

Major Wall Street banks are leveraging the SpaceX initial public offering (IPO) to manage and attract ultra-high-net-worth clients, The New York Times reported Monday.

JPMorgan Chase last week hosted a SpaceX IPO investor briefing at its Manhattan headquarters at which Elon Musk, the company's CEO, presented directly to attendees.

Among the 350 wealthy investors invited were billionaires including Robert Kraft, owner of the NFL's New England Patriots, and Kenneth Langone, co-founder of Home Depot. Musk's presentation was also streamed to some 3,500 high-net-worth clients gathered at 90 JPMorgan Chase branches across the country.

Rival Bank of America held its own investor event June 4, allowing 5,000 clients to watch a presentation by SpaceX executives. Morgan Stanley is also hosting a briefing this week featuring SpaceX management for its high-net-worth clients.

As Wall Street banks pour resources into expanding their wealth management businesses, a high-profile "mega IPO" like SpaceX's offers an opportunity to deepen relationships with ultra-wealthy clients and attract new ones, the Times said. Banks are deploying differentiated sales strategies for their top-tier clients — guaranteeing access to IPO shares or arranging direct meetings with senior executives.

"Exclusive access, scarcity and luxury justify why banks charge premium fees and differentiate their wealth management services," said Timothy Welsh, founder of wealth management consultancy Nexus Strategy.

Through what is being called the largest IPO in history, SpaceX is expected to secure a valuation of more than $1.75 trillion (approximately 2,670 trillion won) and raise $75 billion (approximately 115 trillion won) in new capital. The first day of trading after the listing is set for June 12.

Of the funds SpaceX plans to raise through the listing, $22.5 billion (approximately 34 trillion won) will come from retail investors. The Times said the bulk of the retail allocation is expected to go to high-net-worth individuals.


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