Stack Capital Group (STCK) investor relations material

Market trends and investment strategy

• Focus on democratizing access to pre-IPO private companies, targeting firms 1–3 years from going public.

• Shift in value creation from public to private markets, with early returns now captured before IPO.

• Emphasis on active management, transparency, and alignment of interests; management owns 9.5% of float.

• Permanent capital structure avoids forced selling during market downturns, supporting long-term value.

• Value-add approach includes close collaboration with portfolio company management to drive growth.

Portfolio construction and risk management

• Investments primarily in established, high-growth companies with strong product-market fit and significant revenues.

• Preference for preferred shares to protect downside, but will invest in common shares for exceptional businesses.

• Portfolio turnover is moderate, with about four new investments per year, focusing on potential top global IPOs.

• NAV reported quarterly, with SpaceX comprising 32% of NAV and several other high-profile holdings.

• No leverage is used at the fund or portfolio company level.

Key portfolio holdings and outlook

• SpaceX expected to go public June 12, with strong market position in launches and Starlink's global potential.

• Canva, with 265 million monthly users and 45% growth, is anticipated as a top IPO candidate next year.

• OpenAI and Anthropic seen as transformative AI investments, with OpenAI possibly going public by 2027.

• Other notable holdings include Locus Robotics, Hopper, Crusoe Energy, Databricks, Shield AI, and X-energy.

• Recent investments like FluidStack and X-energy have already shown strong returns and strategic alignment.