The Role of Fundless Sponsors in Aviation Infrastructure and Services Transactions
Posted: Jun 14, 2017
Fundless sponsors are experienced industry-specific companies with deep financial expertise that originate and execute buyout transactions through the use of private capital. Unlike traditional private equity funds they do not raise a pool of committed capital prior to entering the operating stage of buying private companies; rather they provide the experience and expertise to a transaction which facilitates its funding. Since they are not bound by the restrictive size and holding time horizons of traditional funds they can take a more flexible and bespoke approach to execute on unique opportunities. They are especially appropriate for direct infrastructure investment from institutional capital sources such as pension funds, insurance companies and family offices as many such sponsors provide turnkey management solutions as well without the high fund expenses. Also, this model gives the direct investor a much higher degree of control than they have through the mainstream private equity model.
The aviation infrastructure and services segment is an appropriate market for fundless sponsorship of transactions for several reasons. First, apart from whole commercial airport transactions, aviation assets (both infrastructure and service companies) are usually too small for institutional investors. Fundless sponsors offer a proven vehicle to invest in smaller assets in an expense efficient manner. Also, as the aviation infrastructure and service markets are highly fragmented, they are uniquely situated to rollup strategies which create new platforms and networks. Fixed Base Operators (FBOs), Maintenance Repair and Overhaul (MRO) companies and Aircraft Charter and Management (ACM) companies are excellent examples of service companies which possess the attributes and characteristics suitable for this strategy. They are real assets with infrastructure attributes—long lives, high barriers to entry and low risk of sudden disruption. Private capital sources implementing a direct aviation infrastructure investment strategy through a fundless sponsor benefit not only from a lower expense structure but also from the depth and breadth of an experienced management team with a proven track record in private equity.
Global Aviation Infrastructure, headed by Steven Levesque of Charleston, SC, is one such example. Led by an aviation industry executive with over twenty years experience operating under private equity ownership, the company is exceptionally positioned to lead further consolidation in the aviation infrastructure and services segments. With an extensive network of industry contacts, Global Aviation Infrastructure can provide exclusive access to off market, negotiated transactions resulting in efficient transactions and rapid scaling of an aviation platform to critical mass. While the company will provide turnkey management, ultimate board and voting control remains with the direct equity investors. For more information, please visit our website at www.aviationinfrastructure.com.
About Global Aviation Infrastructure
Global Aviation Infrastructure is a leading aviation management company which provides Fixed Base Operation (FBO), Maintenance Repair and Overhaul (MRO), Aircraft Charter and Management (ACM), and aviation infrastructure management for aviation asset owners, corporations, airports, private equity firms, family offices and financial institutions. For more information please visit www.aviationinfrastructure.com
For more information please contact:
Steven Levesque, Principal
+1 (843) 412-6881