PE firms have invested nearly $4 billion in defense and aerospace already this year, a sign of recovery after high interest rates slowed down deals over the last couple of years.
After peaking in 2021, PE investments in the sector took a downward turn in 2022 and 2023, slowing by over $15 billion. But the investments picture this year is looking more positive.
So far, the deal count is only 51, but completed deals have been larger than in previous years, according to PitchBook data. At the current pace, 2024’s deal value is on track to surpass last year’s total.
The largest deal to complete this year was Platinum Equity’s $1.35 billion acquisition of Canadian aerospace components manufacturer Heroux-Devtek in July. By comparison, last year’s most expensive transaction was GenNx360’s buyout of Precision Aviation.
North America accounts for the largest share of PE defense and aerospace investments, currently holding 95% of deal value this year. The region was briefly eclipsed by Europe in 2021, where deal value peaked amid tensions around Russian’s conflict with Ukraine and firms invested $10.4 billion in just one year.
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