Aerospace & defence

Aerospace & defence has been a sector favoured by private equity buyers. Demand from emerging economies and continuing global tensions provides long-term security; technological innovations, such as composites, and regulatory pressures, such as the need to reduce noise and emissions, will require continuing investment. Private equity activity has been clustered around sub-sectors, including component manufacturers such as Avio, and capital-intensive service providers such as SR Technics and MTU Aero Engines. Managers with international mindsets and experience of lean manufacturing have been crucial to the success of private equity investment in this sector.