Ace Capital Partners launches Spain-focused aerospace and defence private equity fund
Ace Capital Partners, a private equity firm specialised in strategic industries and technologies and subsidiary of Tikehau Capital, announces today the launch of Ace Aerofondo IV FCR, with SEPI, Airbus, Indra and Tikehau Capital as investors. This new private equity fund will invest in lower and upper midmarket companies active in the Spanish aerospace and defence sector.
Ace Capital Partners will act as manager of the fund, which will invest in both Support Capital (niche players with the ability to grow organically) and Platform Capital (consolidation platforms to become leaders in their markets through external growth) strategies. Ace is currently investing its fourth vintage of aerospace and defence funds, with a focus on Western Europe and with France and Spain as its core markets. Ace invests in strategic industries and technologies, applying a sector-focused approach and providing strategic and operational support to its portfolio companies. Ace seeks to grow intrinsic value of its investments through engagement over the long term. Ace Aerofondo IV will replicate this approach as it benefits from the recovery of the aerospace and defence sector in the wake of the Covid-19 crisis.
A first closing for EUR100 million of initial commitments will take place in June 2021. Tikehau Capital and SEPI have both invested EUR33.3 million along with the two other Strategic Partners, Airbus and Indra, which have invested EUR28.3 million and EUR5.0 million respectively. The target size is EUR150-200 million. The fund follows the longstanding model of Tikehau Capital, whereby the group invests its own capital in the funds managed by its group entities, to ensure a full alignment of interests between the firm and its investors.
Marwan Lahoud, Executive Chairman of Ace Capital Partners, declares: “The aerospace sector will recover from this crisis. We remain unwavering in our commitment to the sector as it navigates the post-Covid era and we are pleased to manage this fund which is perfectly in line with our objective to protect, strengthen and secure this key industry for Spain, with SEPI, Airbus and Indra as sponsors as well as Tikehau Capital.”
Carmen Alonso, Head of Iberia and UK for Tikehau Capital, adds: “Tikehau Capital is committed to helping the aerospace sector in Spain. We are delighted to partner with SEPI, Airbus and Indra to contribute to the recovery of the sector and ensure the technological competitiveness and strategic importance of the Spanish aerospace and defence sector.”