AeroEquity Partners believes that the rapid pace of change affecting the overall aviation and power generation industries requires market segment specialization. Recognizing that the investment of private equity capital is an inherently opportunistic discipline, AeroEquity has narrowed its concentration into two market segments: (1) the aircraft propulsion (turbojet, turbofan and turboprop aircraft engines) and power generation (industrial turbines) industries, including the manufacture of OEM and replacement parts, and aftermarket maintenance, repair and overhaul; and which possess the core common technology of turbine engines, and (2) the distribution, redistribution and trading of parts in these broader industries.
These segments offer competitive opportunities that hold the promise of higher-than-average growth rates. They offer roll-up and buy & build opportunities where application of technology upgrades and communication improvements lower operating costs, as well as improve product quality and delivery. Most importantly, these market segments align with the past experiences of AeroEquity's Partners.
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Management: AeroEquity believes that superior management is critical in the success of any portfolio company. AeroEquity seeks companies that have management teams that understand their business, have a collective passion for the company and industry, and are respected and connected.
Sound Technology: AeroEquity believes that a leading technology position serves as a competitive advantage and is of overriding importance for any company participating in the aviation industry. AeroEquity only selects those companies that possess leading technology and have the ability to use it to help drive top-line momentum through and beyond AeroEquity's investment period.
Growth: AeroEquity selects investments in companies that have several identifiable elements that assure opportunities for sustained revenue growth and support above-average investment returns.
Profitability, Valuation, Control: AeroEquity focuses on companies that are profitable (generate cash operating income) and have near-term potential for its increase supported by industry/sector, competitive and individual company fundamentals.
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