A team of industry veterans, including a former U.S. Navy SEAL, have banded together to form Axle Point Capital, a new PE firm focused on diversified industrials and business services. The Newport Beach-based buy-out firm’s investment strategy emphasizes its experience in private equity and target industries as well as knowledge of the lower middle market to inform its strategy, investments, and operations.
Axle Point arrives as one of the few PE firms in California with deep operational experience in navigating the federal government’s complex military and defense ecosystem. That stems from the principals’ extensive network of contacts in the beltway and beyond, developed over years of acquiring, operating and successfully selling companies such as emergency government services provider Ellipse Global.
Reflective of the firm’s focus, Managing Partner Gerik Degner recently returned from Ukraine, where he studied the latest in Electronic Warfare (EW) technologies and other military applications. He will team with Axle Point Principal Jacob Call, a well respected 10-year Navy SEAL and COO/Chief Legal Officer Tricia Desmarais, a tenured operator and attorney in highly regulated industries, in finding prime investment opportunities.
Rounding out the PE firm’s junior team is Associate Quentin Palazzo, who brings an impressive background in principal investing and investment banking across various industries, including technology, media and telecom.
Axle Point joins Southern California’s robust aerospace and defense industry, anchored by Boeing, Lockheed, Raytheon, and Anduril Industries, among others. This industry space is attracting increased investments and new operators, especially in defense technology. Globally, some $500 million in venture capital funding has poured in over the past five years, according to Pitchbook data.
While the firm’s proximity to Southern California will yield plenty of regional acquisition opportunities, the firm’s operating footprint extends across the U.S. Aerospace and defense as well as companies engaged in national security will make up most of its diversified industrials group.
“We see a number of prime A&D investment opportunities, specifically around satellite, space, naval and autonomous technology,” said Mr. Degner.
Meanwhile, government services will form the core of the firm’s business services investment platform. As with diversified industrials, many of these portfolio companies operate in highly regulated industries.
Mr. Degner added, “By bringing our investor and operational acumen alongside exceptional management teams inside our portfolio companies, we are well positioned to manage those complexities and build enduring value for all stakeholders.”
About Axle Point Capital
Axle Point Capital’s seasoned investment team has over 55 years of combined experience in operations, investing, and advisory services within the lower middle market. Its diverse skill set encompasses investment analysis, deal execution, operational improvement, and strategic advisory.
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