The private equity firm AE Industrial Partners (AEI) on Tuesday said it has closed a new $1.3 billion investment fund that will primarily focus on companies with critical capabilities and technologies in the aerospace and national security sectors.
AEI, which initiated the fund in 2022, has already used it to invest in existing portfolio companies but also plans to invest in additional companies and create new platform companies. AEI has invested more than 25 percent of the fund so far in platform companies that include small satellite manufacturer and operator York Space Systems, cyber technology firm RedLattice, launch vehicle developer and manufacturer Firefly Aerospace, specialty chemical developer Calca Solutions, and aviation maintenance, repair, and overhaul provider Yingling Aviation.
The fund has also been used for several add-on investments in existing portfolio companies.
AEI is also a key investor various other companies, including the space platform company Redwire [RDW] and BigBear.ai [BBAI], which has expertise in artificial intelligence, data analytics, and identity solutions. AEI frequently acquires a business and then builds on it with additional acquisitions to create its platform companies.
Over the next two years, AEI will use Fund III to create between five and seven new platform companies with Fund III, Kirk Konert, managing partner with the private equity firm and the lead for investments in national security and space, told Defense Daily in virtual interview.
AEI said that between Fund III and investments from other partners and investors, the fund has provided nearly $870 million of co-investment in various deals.