AeroStructure Capital Partners, Inc.

OVERVIEW: AeroStructure Capital Partners, Inc. (“ACP” or the "Company") is the General Partner and Manager of a newly founded real estate investment fund. It plans to invest in various aviation industry-related real estate investment opportunities intended to provide diversity and minimize risk, including but not limited to vertical takeoff and landing (“VTOL”) aircraft . ACP believes the aviation infrastructure and real estate sector offers an unusually attractive combination of established demand, constrained supply, recurring revenue opportunities, valuable real estate, and long-term growth. Unlike investments dependent upon the commercial success of a particular new aircraft, AeroStructure Capital Partners intends to focus principally on deploying capital to acquire minority interests in profitable or otherwise established aviation-related infrastructure businesses and assets, including fixed-base operations (“FBOs”), hangars, aviation real estate, airport services, maintenance and support facilities, and other businesses serving the aviation ecosystem. 

STRATEGY: Unlike other real estate funds, it will focus on opportunities arising from the ever-changing aviation industry-related infrastructure market. Alongside traditional aviation industry investments, ACP also plans to invest in Vertical Private Airports ("VPAs") — the world's first fully integrated aviation-enabled real estate ecosystem. ACP will be further distinguished from other funds through its aviation expertise; institutional real estate/infrastructure investment expertise; AI-enabled sourcing and underwriting; and the longer-term VPA opportunity. The Company intends to achieve the following within about 12 months after closing the seed round: an experienced CEO will be leading a completed fund structure and a first Fund I closing, including substantial anchor LP commitments. To make this possible, the Company plans to establish an institutional investment committee and prepare offering documents, a proprietary AI-enabled underwriting methodology, a credible aviation-infrastructure pipeline, and a placement-agent/internal capital-formation strategy. 

FBOs and related aviation real estate are especially attractive because aircraft require physical infrastructure regardless of who manufactured them. Aircraft must be fueled, parked, hangared, maintained and serviced; passengers and crews require terminals and ground services. Many of these activities generate recurring revenue through fuel sales, hangar rentals, ground handling, maintenance, aircraft parking, tenant leases and related services. Moreover, airport real estate is inherently supply-constrained by land availability, zoning, airport operating requirements and regulatory barriers to new development. There’s enormous existing aviation infrastructure; recurring, diversified revenue characteristics of FBOs, hangars, maintenance and aviation services; supply-constrained airport real estate; demonstrated institutional investment in the sector; and future aviation growth providing upside without requiring ACP to bet on a particular aircraft manufacturer.

Institutional capital has already validated this asset class. Major private-equity and infrastructure investors have made substantial investments in FBO platforms, including Signature Aviation, Atlantic Aviation, and other aviation-service businesses. Blackstone, Global Infrastructure Partners and Cascade Investment acquired Signature Aviation in a transaction valued at approximately $4.7 billion, demonstrating institutional recognition of the durable economics and strategic value of aviation infrastructure.

The Company believes these fundamentals create an attractive foundation for its investment strategy. It will seek minority positions in established aviation-infrastructure businesses and real estate where existing operations provide downside protection while consolidation, modernization, capacity constraints and continued growth in business and general aviation provide opportunities for appreciation, with a strategic allocation to Vertical Private Airports and related real estate infrastructure. 

TEAM: One Wall Street investment bank is reaching out to assist ACP in finding qualified Chief Executive Officer candidates. We're also seeking CEO candidates through a leading NYC-based executive search firm for senior executives in the financial sector. ACP then plans to build out its capital markets teams: an acquisition team (sourcing new deals), a disposition team (selling deals), and a funding management team (queuing up deals). Ultimately, it will manage multiple Funds to raise and deploy capital across overlapping periods in their life cycles. The Company's founders and current leadership include the founder of aircraft development companies, an expert in planning, project management and consulting services for the development, financing, leasing, and operation of multiple categories of real estate, and a senior executive with decades of experience as a pilot, a chief commercial officer, as a strategy and business development executive, and other executive positions in the aviation industry.