I didn’t expect to spend part of last week reading about orbital junk.
But here we are.
I was working on an ESG-tilted portfolio for a client who’s very focused on environmental innovation. We’d covered the usual ground, renewables, clean tech, battery storage. Then I stumbled across an article about the growing market for space debris removal.
At first I nearly skipped past it. It sounded like something from a Netflix documentary.
But the more I read, the more it felt like one of those themes that quietly moves from “that’s interesting” to “actually, that’s investable”.
So let’s talk about it.
The Problem We Don’t See
There are thousands of pieces of debris orbiting Earth. Old satellites. Fragments from collisions. Objects travelling at speeds that can damage or destroy operational satellites.
And we rely on those satellites more than most clients realise, GPS, communications, weather data, banking infrastructure.
As launches increase, so does congestion risk.
Fortune Business Insights projects steady growth in the space debris monitoring and removal market, driven by both commercial and regulatory pressure:
Global Space Debris Monitoring and Removal Market Growth
Congruence Market Insights makes a similar point, linking growth directly to increased satellite activity:
https://www.congruencemarketinsights.com/report/space-debris-removal-market
In other words, this isn’t just environmental clean-up. It’s infrastructure protection.
And that shifts the conversation.
When a Niche Theme Starts Attracting Serious Capital
What made me pause wasn’t just the environmental angle. It was the capital flow.
There are UK firms actively developing debris tracking and removal technology. Innovation News Network looks at how the UK is addressing the risk:
Mitigating the risks of space debris in the UK
Mewburn highlights some of the UK companies tackling orbital debris commercially:
Saving Space: the UK-based companies tackling orbital debris
And when investment banks start publishing pieces on the expanding space economy, as DelMorgan & Co have done:
Banking on Orbit: Investment Banking’s Expanding Role in the Space Economy
…that’s usually a sign that this is moving beyond a science project.
Still early. Still volatile. But no longer fantasy.
The Practical Bit: How Would a Client Access It?
This is where the paraplanner brain kicks in.
Right now, most retail exposure would be indirect:
• Aerospace and defence stocks
• Thematic space economy ETFs
• Private market funds with space-tech exposure
Neo Market Data outlines some of those routes:
How to invest in space debris cleanup companies
But let’s be honest. Pure-play debris removal companies are limited. Many are early-stage. Revenue visibility is patchy. Volatility is likely.
So the real conversation isn’t “can we invest in this?”
It’s “how does this sit within the client’s overall risk profile and objectives?”
The Bit That Matters: Suitability
Whenever a theme like this pops up, especially one with a strong ESG narrative, it’s easy for enthusiasm to run slightly ahead of structure.
And this is where we have to slow it down.
COBS 9 is clear. We need sufficient information about the client’s knowledge, experience, objectives and financial situation before making a recommendation:
https://www.handbook.fca.org.uk/handbook/COBS/9/2.html
Under Consumer Duty, we’re expected to deliver good outcomes, not just interesting portfolios:
https://www.handbook.fca.org.uk/handbook/PRIN/2A/
So instead of writing:
“Client interested in innovative ESG opportunities.”
We need something more robust:
“Client seeks a small, clearly defined allocation to high-growth, high-volatility infrastructure-linked innovation, with capacity for loss confirmed and time horizon aligned.”
It sounds drier. It is safer. And it’s defensible.
That difference is often where our work really earns its keep.
What I’d Be Asking in Practice
If this theme came up in a client meeting, I’d want clarity on three things:
1. Allocation size
Is this a satellite holding within a diversified portfolio, or is it drifting into concentration risk?
2. Time horizon
Are we genuinely thinking long term, or reacting to a headline?
3. Downside understanding
If this underperforms for five years, is the client still comfortable?
Because thematic investing isn’t the issue. Unframed thematic investing is.
Final Thoughts
Space debris removal is unlikely to be a core portfolio holding any time soon.
But it’s a useful reminder of how quickly new themes can move from obscure to investable, especially when infrastructure, regulation and capital markets all start pointing in the same direction.
Our role, as paraplanners and suitability professionals, isn’t to dismiss new ideas.
It’s to slow them down. Structure them properly. Evidence them clearly.
That’s where the real value sits.
If this mirrors conversations you’re having in your firm, I’d be genuinely interested to hear how you’re approaching niche themes like this.
Global Space Debris Removal Market
Space Debris Monitoring & Removal Market
How to invest in space debris cleanup companies
Mitigating the risks of space debris in the UK
Saving Space: the UK-based companies tackling orbital debris
Banking on Orbit: Investment Banking’s Expanding Role in the Space Economy
