AE Industrial Partners in 2020
AE Industrial Partners (AEI) is a private equity firm that focuses most of its investments on sectors such as aerospace, defense, government services, energy creation, and specialty industrial markets. AEI has a team of almost 40 different investment professionals, which are advised by a large network of industry experts and analysts. These experts source transactions, conduct due diligence, and help portfolio companies by providing advice about their customers and overall strategy. In 2020 up to this point, AEI has made 18 investments. Of those 18 investments, 16 of them have been in founder- or family-owned businesses, suggesting that this was a contributing factor in their process. Those investments have come from the AE Industrial Partners Fund II, which holds an impressive $1.36 billion. The fund specifically makes control-oriented investments in promising and industry-leading middle-market companies. The investment money also comes from AE Industrial Partners Structured Solutions, which has a slightly different investing focus, looking more at secured and unsecured debt, preferred stock, and non-control common equity. The final source for investment money for AEI comes from the AE Industrial Partners Aerospace Opportunities Fund. This fund also has a different strategy when it comes to investments. It specializes in acquiring commercial aircraft engine parts and developing leasing solutions built to create revenue and capital appreciation for those who have invested.
AEI has created five new platforms in 2020 as well. The first of which is the American Pacific Corporation, a company dedicated to manufacturing specialty materials for the defense and aerospace industries. The next is NuWave Solutions, which works on data management and Artificial Intelligence cloud solutions for the government. Following this is Pangiam, which provides travel and security technology services. Redwire is a company working in mission-critical technology solutions, and finally, there is PCI, which provides the intelligence and defense communities with a series of technologies and services, including cybersecurity, CNO, and cloud and data analytics. The firm has also completed add-on acquisitions for portfolio companies such as Alpine Air, Applied Composites, Belcan, and Resolute Industrial, among many others. Needless to say, AEI had a banner year in 2020.
Inc. Magazine Distinguishment
As a result of both their platform creations and investments in 2020, AEI was honored by Inc. Magazine. More specifically, AEI was named on Inc. Magazine’s “Top 50 Best Private Equity Firms for Entrepreneurs.” This can be attributed to the creation of the five different platforms, as well as the 16 investments made in founder- or family-owned businesses. These investments, in particular, have made a significant impression on Inc. Magazine along with other equity firms and, most importantly, entrepreneurs. The full list will be published in the November 2020 issue of the magazine and will also be available online.
AEI has become a very strong private equity firm in recent years, and its success in 2020 is proof of its positive reputation. Their investments, platform creations, and add-on acquisitions showcase the diverse and solid collection of work that the firm has put in place. The recognition from Inc. Magazine further serves as validation for these very efforts. AEI is proving itself in an economically difficult year to be a well-grounded and clear-headed equity firm with a lot of upside potential, especially given the serious amount of money they have already set aside for future investments.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.