Investment Criteria
Targeted End Markets
Aerospace
Defense
Industrial
Growth
- Complex Airframe & Engine Components
- Proprietary Component Manufacturing
- Maintenance, Repair & Overhaul
- Supply Chain Management
- Charter / Freight Services
- Composites & Advanced Materials
- Avionics & Electronics
- Outsourced Engineering
- Defense Electronics / Hardware
- Naval Sustainment & Logistics
- Unmanned Vehicles
- Space-Related Components
- Weapons Sub-Systems
- Electronic Components
- Artificial Intelligence / Machine Learning
- Ship Building
- Industrial Distribution & Services
- Precision Engineered Components
- Diversified Manufacturing
- Transportation & Logistics
- Test & Measurement
- Industrial Machinery / IoT
- Tubing & Ducting
- Plastics & Packaging
Investment Criteria
Transaction Profile
Dynamic Growth Capital
- Majority and minority investments
- Leveraged or management buyouts
- Found-owned recapitalizations
- Corporate divestitures / carve-outs
- Buy-and-build strategies
- Great companies / management teams at an inflection point
Operations in North America
Middle-Market
Sector Focused
New Platform ‘Sweet Spot’
- Enterprise Value: $50 – $500mm
- Equity: $15 – $200mm
- EBITDA: $5 – $50mm
Desired Characteristics
Manufacturing and services businesses serving the aerospace, defense, and industrial growth sectors
- Talented and high-integrity management teams
- Differentiated, difficult-to-replicate products or services
- Strategic value to a longstanding, blue-chip customer base
- Niche market positions
- High value-to-cost ratio
- Multiple growth levers
- Intellectual property or ‘IP-lite’ characteristics
- Ability to achieve strong operating margins
Key Themes
Long-term GDP+ growth dynamics
- Global air travel demand
- In-service fleet growth
- Defense budget increases
- Sub-sector specific ‘above-market’ trends
Visible demand drivers
New build & aftermarket mix
Barriers-to-entry / high switching costs
Technically demanding, regulated manufacturing and service delivery environment
Fragmented and ‘self-replenishing’ sector structured for consolidation