OUR ROLE
IDEAL INVESTMENT CANDIDATE
Aerostar Capital provides equity capital, plus the strategic and operational support needed to acquire and grow successful aerospace suppliers. The ideal investment candidate is an "orphan" or "non-core" division trapped within a larger corporation or a large private supplier to the aerospace industry seeking significant growth capital. This candidate business sells products and/or services to customers in the commercial aviation, defense, government, and/or space markets. Candidate businesses will have annual revenues of at least $100 million, good cash flow, solid relations with a diverse set of global customers, a clearly focused and competitively sustainable growth strategy, and a strong and committed management team. Often candidate companies have the potential to accelerate key industry trends including supplier consolidation, out sourcing, lean production, globalization, and value-added processing. These companies have the potential to become clear market leaders by acquiring weaker competitors and/or closely adjacent businesses. We seek strong managers as our investment partners and we reward them with a significant ownership stake in the new company. We assure that the objectives and rewards for the equity sponsors and senior managers are fully aligned.  We invest in established aerospace suppliers.  We do not invest in aerospace start ups or new ventures.

HOW WE ADD VALUE
Aerostar works in partnership with large and experienced investment funds to identify, acquire, and grow aerospace suppliers. We normally make significant investments, leading to a major or controlling equity position. The financial structure of each transaction is tailored to the needs and plans of each individual entity.  We invest in established businesses with proven cash flow.  We do not invest in start up ventures or unproven new products, nor do we invest in airlines.
Beyond providing needed capital, we add value to our portfolio companies in many other ways. We take an active role in identifying, evaluating, negotiating, and financing the initial investment. After this investment is made, we play a more strategic and/or operational role as a board-level partner for management. Our specific role is dictated by the needs of the business and the experience of the incumbent managers, but we always work to supplement management and help them speed the growth process. Often our role includes direct support for high-level customer contacts and new strategic initiatives. As the company achieves its initial goals, we can help management acquire other closely related companies. Ultimately Aerostar Capital works with management to plan and execute a rewarding "liquidity event." Liquidity is normally achieved in 3 to 7 years through a public offering of stock, refinancing, or a strategic sale.