Vance Street Capital LLC (“Vance Street”), a Los Angeles based private equity firm, today announced that it has completed a single-asset secondary transaction to extend its partnership with Jet Parts Engineering (“JPE” or the “Company”). The transaction creates a continuation fund – VSC EV (Extended Value) 3 LP (the “Continuation Fund”) with new capital to support the Company’s organic growth initiatives and acquisition strategy.
Founded in 1994 and headquartered in Seattle, WA, JPE is a leading provider of proprietary, aftermarket solutions for the commercial aerospace industry. The Company has deep engineering experience in developing proprietary, OEM-alternative PMA parts and DER repairs as well as MRO services, with a growing portfolio of intellectual property protected by FAA regulations. JPE delivers a compelling value proposition, offering lower costs and better service to a diversified customer base of blue-chip airlines, cargo providers and MROs.
Vance Street originally invested in JPE in July 2018 through Vance Street Capital II, L.P. Since partnering with Vance Street, the Company has accelerated its pace of new product introductions, developed new proprietary repair capabilities, invested in cutting edge infrastructure and systems, built out a talented management team and successfully completed four add-on acquisitions. EBITDA has increased approximately 500% under Vance Street ownership.
“Vance Street has been a fantastic growth partner for our company,” said Anu Goel, Founder and CEO of Jet Parts Engineering. “They shared our long-term strategic vision and invested accordingly; through our partnership with Vance Street, we are now a full service provider to the industry combining the strengths of PMA, DER and MRO to offer our customers a compelling value proposition. We are very pleased to be able to continue working closely with the Vance Street team during our next chapter of growth.”
The Continuation Fund was capitalized with commitments from both new and existing Vance Street LPs. The transaction was led by leading private market investors, Hamilton Lane and Apogem Capital.
Brian Martin, Managing Partner at Vance Street, added: “We are very excited to announce this transaction. It allows us to deliver an outstanding outcome to our investors while extending our investment in a great company led by a great team. We are truly appreciative of Hamilton Lane, Apogem and all other new investors for their support and confidence in both JPE and Vance Street.”
“Jet Parts is well positioned to continue its impressive growth trajectory,” said Nic Janneck, Partner at Vance Street. “We’re excited to expand the Company’s proprietary parts catalogue, develop new capabilities, and make strategic acquisitions to continue to build this leading aftermarket platform.”
William Blair acted as financial advisor to Vance Street and placed the continuation fund. Kirkland & Ellis LLP and Vedder Price LLP acted as legal advisors to Vance Street and JPE. Debt financing for the transaction was provided by Neuberger Berman Private Debt. Terms of the transaction were not disclosed.
About Hamilton Lane
Hamilton Lane is one of the largest private markets investment firms globally, providing innovative solutions to institutional and private wealth investors around the world. Dedicated exclusively to private markets investing for more than 30 years, the firm currently employs nearly 700 professionals operating in offices throughout North America, Europe, Asia Pacific and the Middle East. Hamilton Lane has $854 billion in assets under management and supervision, composed of $119.2 billion in discretionary assets and over $734.8 billion in non-discretionary assets, as of September 30, 2023. Hamilton Lane specializes in building flexible investment programs that provide clients access to the full spectrum of private markets strategies, sectors and geographies. For more information, please visit www.hamiltonlane.com.
About Apogem Capital
Apogem Capital, a New York Life Investments Company, offers investors access to the middle market’s growth engine through investments in leading private companies and funds. With approximately $40 billion in assets under management as of June 30, 2023, the firm manages a streamlined suite of capital solutions, including direct lending, junior debt, primary fund investments, secondary investments, equity co-investments, GP stakes, and private real assets. Apogem Capital is a wholly owned subsidiary of New York Life Insurance Company (“NYLIC”), through New York Life Investment Management Holdings, LLC (“NYLIM”). For more information about Apogem, please visit apogemcapital.com.