AE Industrial Partners (AEI), a private equity firm, has closed a $1.28 billion fund and is now seeking additional space investments.
“We believe that space is currently one of the best sectors to invest in due to its huge growth potential,” AEI managing partner Kirk Konert told SpaceNews.
On July 9, the aerospace and defense investment business announced that its third flagship fund would close, having surpassed its $1.2 billion goal and reached its hard ceiling.
Over 25% of the fund has already been invested in businesses, allowing York Space Systems, a manufacturer of spacecraft, and Firefly Aerospace, a small satellite launcher, to acquire Emergent Space Technologies, a provider of software engineering, and Spaceflight Inc., a satellite transportation service.
Thus far, AEI has made investments in space related to the infrastructure company RedWire and the technology company Sierra Space, which is responsible for the Dream Chaser freight spaceplane.
“Space technology is becoming an increasingly critical element of the infrastructure for the global economy,” Konert said.
“Companies across every industry have begun evaluating how space will be a part of their ongoing and future business strategy. As a result, every company is, in some capacity, a space company.”
To address concerns for national security, AEI, situated in Boca Raton, Florida, in particular, predicts a sharp increase in demand for new space technologies.
According to Konert, “The U.S. government has also become more open to collaborating with non-traditional primes” As an example, York Space, which was founded 14 years ago, is currently producing satellites for the Space Development Agency and Space Force.
In its announcement, AEI stated that a wide range of domestic and international investors, including sovereign wealth funds, pension funds, and philanthropic foundations, had committed money for its third fund.
Since establishing its first institutional private equity fund about ten years ago, the company has made more than 130 investments and currently manages assets valued at approximately $6.2 billion.