GenNx360 Capital Partners Raises a $400 million Single-Asset Continuation Fund to Support Continued Growth of Precision Aviation Group
Portfolio Company News - November 13, 2023
New York, New York. November 13, 2023. GenNx360 Capital Partners reaffirms its long-term commitment to Precision Aviation Group through a new continuation fund, providing access to significant committed capital for organic growth and acquisitions.
GenNx360 Capital Partners (“GenNx360”), a New York-based private equity firm investing in middle market business services and industrial companies, announced today that it has completed a single-asset secondary market transaction to continue its partnership with Precision Aviation Group (“PAG” or the “Company”). The secondary market transaction establishes a continuation fund, GenNx360 Aerospace Fund, L.P. (the “Continuation Fund”) with new and follow-on capital to support the Company’s accelerated organic growth and acquisition strategy. Terms of the transaction were not disclosed.
PAG is a leading provider of products and value-added services to the aerospace and defense industries worldwide. With 20 repair stations globally, PAG provides MRO and supply chain solutions for fixed- and rotary-wing aircraft, with capabilities in four MRO segments – Engines, Avionics, Components, and Manufacturing/DER Services. Since GenNx360 acquired PAG in 2018, the Company has completed seven add-on acquisitions and increased EBITDA approximately 400%.
The transaction was led by leading private markets investors, Neuberger Berman and Blackstone Strategic Partners. This $400 million GenNx360 Aerospace Fund will allow PAG to aggressively pursue its organic growth initiatives and acquisition strategy. GenNx360 will maintain its position as PAG’s private equity sponsor, and the transaction will result in no change to the governance of PAG or to its executive leadership team.
“We are delighted to build on our partnership with PAG as they continue to execute their growth plans. The success of PAG to date is a testament to PAG’s exceptional management team led by David Mast and their strong execution. We are grateful for all the investor support and really appreciate Neuberger Berman and Blackstone Strategic Partners’ conviction as lead investors,” said Ron Blaylock and Lloyd Trotter, Founders and Managing Partners at GenNx360.
Daphne Dufresne, the GenNx360 Managing Partner on the PAG investment said, “Since GenNx360’s initial investment in 2018, we have invested in our team, our engines and avionics capabilities and scaled the business to operate 20 repair stations globally. PAG is poised to sustain its growth trajectory with new and existing customers, and excited to continue our proven buy and build strategy.”
"Backed by the unfunded commitments in the GenNx360 Aerospace Fund, we continue to seek strategic acquisition targets to better service our customers across the world and increase our inhouse repair capabilities," said Pratik Rajeevan, the GenNx360 Principal on the transaction.
Evercore acted as lead financial advisor for the transaction with Houlihan Lokey also acting as a financial advisor. Paul, Weiss, Rifkind, Wharton & Garrison served as legal counsel for GenNx360 Capital Partners, and Winston & Strawn served as legal counsel for Precision Aviation Group.
About GenNx360 Capital Partners
GenNx360 Capital Partners is a private equity firm focused on acquiring middle-market business services and industrial companies. GenNx360 partners with companies having proven and sustainable business models in expanding industries with the objective of implementing and supporting value-enhancing organic and inorganic initiatives to accelerate growth, deliver cost efficiencies, and generate strong financial returns. www.gennx360.com
About Precision Aviation Group
Precision Aviation Group (PAG) is a leading provider of products and value-added services to the aerospace and defense industries worldwide. With 20 Repair Stations, and over 850,000-square-feet of sales and service facilities in the United States, Canada, Australia, Singapore, and Brazil. PAG’s global locations and customer-focused business model serve aviation customers through Supply Chain and Inventory Supported Maintenance, Repair and Overhaul (ISMRO®) services. PAG provides MRO and supply chain solutions for fixed- and rotary-wing aircraft. PAG has MRO and manufacturing capabilities in four MRO segments – Avionics, Components, Engines and Manufacturing/DER Services. www.precisionaviationgroup.com
For media inquiries about this press release, please contact:
GenNx360 Capital Partners
Carmen Rojas, Director of Investor Relations