Boeing, AE Industrial Partners to launch second venture fund

By David Shepardson and Tim Hepher

FARNBOROUGH, England – Boeing Co mentioned on Wednesday it had agreed to take a position $50 million in AEI HorizonX, increasing a partnership established with non-public fairness agency AE Industrial Companions to put money into aerospace know-how startups.

The brand new funding will anchor AEI HorizonX’s second enterprise fund (Fund II), which plans to boost $250 million “to help promising start-ups in future mobility, area, sustainability, digital enterprise purposes, networks and safety.”

Boeing, which like many aerospace firms had traditionally used in-house enterprise funds to tightly management know-how growth, launched HorizonX in 2017 as a enterprise capital arm to put money into early-stage firms.

Final 12 months, Boeing spun it off to forge a broader exterior funding fund managed by AE Industrial Companions, an aerospace-specialist non-public fairness agency with $5 billion beneath administration.

Boeing mentioned in a press launch that some AEI HorizonX portfolio firms have made progress in zero-carbon plane propulsion programs; passenger leisure; and security and cyber safety for industrial and protection plane.

Marc Allen, Boeing’s chief technique officer, advised Reuters the brand new fund would put money into applied sciences like mobility, sustainability, area and communications: “the whole lot that goes into the brand new industrial know-how to help aerospace”.

Requested whether or not buyers remained supportive of aerospace after share costs sank when journey demand tanked throughout the pandemic, Allen mentioned, “The constructive disruption that know-how is enjoying throughout the economic panorama is evident.”

He added: “You possibly can’t do higher than to purchase in when a market is on the backside. In fact, after COVID, aerospace is simply watching an important large progress curve in entrance of it.”

Since 2021, the AEI HorizonX portfolio has had 5 preliminary public choices and exits. Its portfolio options 51 world investments in areas together with AI and machine-learning.

Among the many unique HorizonX’s investments was a $20 million stake in Richard Branson’s suborbital tourism enterprise Virgin Galactic, which flew the billionaire British businessman to the sting of area final 12 months.

Each Boeing and Airbus forecast sturdy underlying airplane demand, whereas new threats are driving up defence demand. However provide chain issues persist.

Aerospace provide chains “should get extra environment friendly, extra digital, extra linked,” Allen mentioned in an interview.

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