As SpaceX prepares for its IPO, investors who bought in through multi-layered special purpose vehicles (SPVs) face significant uncertainty about their actual share holdings. Because SPV structures can be stacked four or five layers deep, lower-tier investors may not learn their true allocation until post-IPO lock-ups lift over a period of up to eight or nine months. Each layer has 30 days to distribute shares to the next, compounding delays. Beyond timing, investors risk having shares eroded by undisclosed fees, and in some cases may receive nothing at all due to fraud — as illustrated by a recent prison sentence for an SPV manager who fabricated allocations. Experts warn that more fraudulent actors may be exposed once lock-ups expire.
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