#USA #Dania Beach #Next Level Aviation #USM #Turning Rock Partners

Next Level Aviation® Takes Major Steps in Recapping Turning Rock Partners

In a significant announcement made on January 14, 2025, Next Level Aviation® (NLA) has entered an agreement to fully redeem the preferred equity investment made by Turning Rock Partners (TRP) back in 2019. The prominent player in the distribution of used serviceable materials (USM) for commercial aircraft is expected to complete this redemption by June 30, 2025, marking a crucial transition for the company.

The Agreement and Its Importance

NLA commenced the redemption process with an initial payment to TRP just before the end of 2024. This momentous decision reflects NLA's determination to realign its ownership structure and further solidify its position in the global aircraft materials market. Jack Gordon, Chairman and CEO of Next Level Aviation, expressed his satisfaction with the agreement and gratitude for the support provided by TRP over the past five years. Gordon acknowledged the challenges faced during the COVID-19 pandemic, highlighting the crucial role TRP played during these tough times.

The redemption signifies a shift back to 100% ownership of NLA by its founders — Jack Gordon, Mike Dreyer, and Matt Dreyer. Following the recapitalization, the company plans to reevaluate its equity requirements and pursue a new preferred equity partner to fuel further growth.

NLA's Market Position

Next Level Aviation stands out as a leader in maintaining a ready inventory of used serviceable materials particularly for the Boeing 737 and Airbus A320 families, which comprise around 70% of the global commercial fleet. Since its establishment in March 2013, NLA has garnered a reputation for compliance with industry standards, being ASA-100 accredited and adhering to FAA guidelines. The company’s focus on aircraft materials makes it a vital player in the aviation industry's supply chain, especially in a recovering post-pandemic landscape.

As anticipated, the upcoming changes in ownership and structure are intended to empower NLA to thrive in a competitive market. Jack Gordon reiterated NLA’s commitment to excellence, stating, “We wish TRP the best with their future investments.” This transition is more than just a financial maneuver; it's a strategic pivot that sets the stage for NLA's future endeavors.

The Role of Turning Rock Partners

Turning Rock Partners has played a significant role in financing lower-middle market businesses across North America, focusing on bespoke investments tailored to meet each company's unique needs. Their collaboration has enabled NLA to navigate some of the toughest periods in recent aviation history, showcasing TRP’s commitment to supporting promising enterprises.

John Hamilton, COO of Turning Rock Partners, commented on the partnership, praising NLA’s resilience. He emphasized that the agility and tenacity exhibited by NLA were pivotal in overcoming the operational challenges posed by the pandemic, making their success a reality.

Next Steps for NLA

As NLA prepares for the next chapter, attention will be turned toward strategic investments and partnerships that align with their vision. With fresh capital from a future equity partner, the company aims to elevate its operations and explore new market opportunities. This recap reflects advancing ambitions to enhance service offerings and expand across different markets in the aviation sector.

Next Level Aviation’s plans highlight a broader narrative within the commercial aviation industry: the need for adaptability and strategic realignment in a post-pandemic world. As aviation slowly recovers, those who are willing to innovate and rethink traditional structures, like NLA, may find themselves ready to soar to new heights.

For more details about Next Level Aviation and its offerings, visit their website at Next Level Aviation.