#United States #Oklahoma City #Aerospace #Acorn Capital #Sentry Aerospares

Acorn Capital Management Enhances Strategic Partnership with Sentry Aerospares

Acorn Capital Management, a notable private equity firm concentrating on aerospace, defense, intelligence, and space sectors, has successfully closed a single-asset continuation fund aimed at strengthening its collaboration with Sentry Aerospares. The partnership sees Kline Hill Partners and LSV Advisors co-leading this significant investment initiative. While specific financial details remain undisclosed, the fund is designed to provide liquidity for current investors and attract fresh capital to fuel Sentry's ambitious growth plans.

Sentry Aerospares stands out in the market as a premier distributor of hard-to-find commercial aircraft rotable components. This move not only assures existing investors but also channels additional funds from new partnerships to amplify Sentry's growth, which encompasses both organic expansion and mergers and acquisitions. Rick Nagel, managing partner at Acorn, expressed excitement about this transaction, noting its dual benefit—offering liquidity to investors while deepening ties with Sentry’s management team and founders, who continue to hold significant shares in the company.

Acorn initially invested in Aerospares 2000 in December 2019 and supported its merger with Sentry Aerospace in July 2022, which paved the way for Sentry Aerospares' rebranding. The establishment has experienced exceptional growth since then, doubling its business and asserting itself as a leading independent distributor in a sector known for its high-value, minimally stocked components. With transatlantic stock locations and a diverse global client base exceeding 600, including airlines and Maintenance Repair and Overhaul (MRO) operators, Sentry Aerospares is recognized for its rapid Aircraft on Ground (AOG) support and unmatched inventory availability.

Greg Agnew, a partner at Acorn, highlighted the value Sentry brings to the global aviation aftermarket, reiterating their commitment to sustaining and amplifying Sentry's remarkable growth trajectory. The newly established fund will not only provide further capital but will also support Sentry's strategy of expanding inventory, upgrading technology, and exploring potential acquisitions to enhance its resilience and customer service.

Founders Adam Nemenyi and Tony DiSimone articulated their enthusiasm for the growth opportunities available post-merger, noting that they are only beginning to explore the full potential of commercial synergies that could arise from their strategic alignment. They voiced confidence in the sustained momentum provided by the contributions of new investors.

Kline Hill's managing director, David Swanson, expressed satisfaction in collaborating with Acorn and the Sentry Aerospares teams, emphasizing their recognition of the unique business model that Sentry Aerospares offers and anticipating a fruitful partnership moving forward.

The legal intricacies of the transaction were managed by UBS Investment Bank for financial advisory services and Proskauer Rose LLP for legal counsel on Acorn’s side. Sentry Aerospares has retained Hill Dickinson LLP and Hartzog Conger Cason LLP for its legal representation.

About Acorn Capital Management

Acorn Capital Management is a private equity firm operating in the middle market, with a dedicated focus on aerospace, defense, intelligence, and space sectors. The firm prides itself on partnering with operational companies striving to enhance mobility and safeguard national interests. Acorn's significant expertise in the aerospace and defense sectors solidifies its reputation, as it actively collaborates with management teams to nurture portfolio companies into market leaders.

About Kline Hill Partners

Founded in 2015, Kline Hill Partners has carved out a niche within the private equity secondary market, delivering expert solutions in smaller transaction sizes. The firm manages assets exceeding $5.4 billion, backed by a reputable base of institutional investors. Kline Hill's strategies encompass a variety of options, including LP fund transfers and GP-led transactions, supporting small-deal secondary markets.

About LSV Advisors

Established in 2005 and based in New York, LSV Advisors specializes in secondaries, managing around $3.2 billion across various alternative investment funds. The firm offers a comprehensive range of restructuring and liquidity solutions, tailored to fund managers and investors alike.

About Sentry Aerospares

Sentry Aerospares is celebrated for its provision of rotable spares support worldwide, maintaining a strong reputation for customer service and an extensive stock of in-demand and hard-to-find parts. Their commitment to quality is fundamental to their operations, offering 24/7 AOG service to ensure seamless support for aviation partners.