Growth Equity Round Raises $170 Million for ABL

ABL Space Systems has closed an investment growth equity round of $170 million at a valuation of $1.3 billion. The Series B round was led by funds and accounts advised by T. Rowe Price Associates, Inc.

"We're excited about our partnership with ABL Space Systems. We think the global space economy has significant long-term growth potential."

Jason Adams, portfolio manager of T. Rowe Price's Global Industrials Fund.

Participation in the growth equity round included existing ABL investors and new investments by Fidelity Management & Research LLC and an unnamed third global investment management firm.

The new capital follows a year of significant growth for ABL, the emerging space launch company based in El Segundo, California developing the 1,000-kilogram (2,200 pound) class RS1 launch vehicle and GS0 deployable launch system. ABL has secured and executed contracts with ten distinct customers: five commercial customers, four U.S. department of defense customers, and one national space agency customer.

According to the ABL Space Systems website, the RS1 was developed for "the high-cadence, no-fuss future of orbital launches." The company says the rocket combines "simple architectures with modern manufacturing processes" to " break the trade-off between cost, reliability and flexibility." A first launch of RS1 is planned later in 2021, after less than four years of rapid development. With GS0, RS1 can be transported in shipping containers and launched from any suitable location in the world.

The metalic, 2-stage ground-launched booster is powered by E2 engines burning LOx and kerosene. Launch costs are projected to be $12 million per launch. The cost per kilogram to carry a payload to Low Earth Orbit (124 miles) is estimated at $8,888, while the price per kilogram to achieve a 310-mile Sun Synchronous Orbit is estimated at $12,000.

"We're excited about our partnership with ABL Space Systems. We think the global space economy has significant long-term growth potential," said Jason Adams, portfolio manager of T. Rowe Price's Global Industrials Fund. "We think ABL has a management team, technology set and product strategy that should enable long-term competitive advantages."

(Source: ABL Space Systems news release. Image courtesy ABL Space Systems)