AE Industrial Partners has closed an $850m single-asset continuation fund for its portfolio company Blue Raven, an aerospace and defence distributor focused on mission-critical components and supply chain solutions, according to Private Equity Wire. The continuation vehicle is led by Lexington Partners and is intended to provide additional capital for Blue Raven’s expansion and technology development, according to Private Equity Wire.
Fund close details
The fund is structured as a single-asset continuation vehicle for Blue Raven and closed at $850m, according to Private Equity Wire. The continuation vehicle is led by Lexington Partners, and the capital is earmarked to support Blue Raven’s expansion and technology development as demand for specialised aerospace and defence supply chain services continues to grow, according to the publication.
Blue Raven’s operating footprint since AE Industrial’s 2019 investment
AE Industrial made its initial investment in Blue Raven in 2019, and the company has since developed into a global distribution platform, according to Private Equity Wire. Blue Raven supplies highly engineered parts, complex systems, and hard-to-source components to military and commercial customers across more than 40 countries, according to the report.
Capital use: expansion and SEDNA analytics platform development
The continuation fund will provide additional capital to support Blue Raven’s expansion and technology development, according to Private Equity Wire. The investment will also support further development of Blue Raven’s proprietary SEDNA analytics platform, which provides real-time supply chain intelligence and forecasting, according to the publication.
SEDNA is described as providing real-time supply chain intelligence and forecasting to reduce lead times, address component obsolescence, and improve operational readiness, according to Private Equity Wire.
Ownership extension and next phase of growth
The transaction allows AE Industrial to extend its ownership of Blue Raven while supporting the company’s next phase of growth, according to Private Equity Wire. Private Equity Wire also reports that this next phase of growth is framed against increasing complexity across global defence supply chains.
Widely-known context: continuation funds are commonly used by private equity firms to hold a portfolio company for longer while bringing in new capital and liquidity options for existing stakeholders. Widely-known context: aerospace and defence supply chains often require specialised sourcing and distribution capabilities for mission-critical components.
