Thrust raises initial C$77m for aerospace supply chain fund

Canadian private equity firm Thrust Capital Partners has launched a new fund focused on the aerospace industry supply chain.

Canadian private equity firm Thrust Capital Partners has launched a new fund focused on the aerospace industry supply chain. Targeting C$100 million, the fund has secured C$77 million in a first closing. The Montreal-based firm, founded by Benoît Brossoit, Frédéric Loiselle and Milad Jawabra, is partnering with Desjardins Group, Distinction Capital, Fonds de solidarité FTQ, Investissement Québec and other investors.

PRESS RELEASE

Montreal, June 7, 2022 – Thrust Capital Partners is launching the first Canadian private equity fund dedicated exclusively to the aerospace industry supply chain. The new fund, which is targeting a size of $100 million, has already received firm commitments worth $77 million for its initial closing. It represents an ideal launching pad for driving the growth of SMEs in Québec and Canada and accelerating their development into global leaders.

Thrust Capital Partners intends to play a strategic role in supporting SMEs during a time of consolidation within the sector, vertical integration, automation, platform diversification and the adoption of new sustainable technologies. Possessing strong expertise in industrial and financial management, the Thrust Partners Capital team aims to create vertically integrated and horizontally diversified companies.

Co-founded by Benoît Brossoit, Frédéric Loiselle and Milad Jawabra, three partners with unique knowledge of this market, Thrust Capital Partners’ objective is to support business leaders with their expansion projects by providing them access to the liquidity needed to support their growth, strategic guidance in mergers and acquisitions, privileged relationships with major OEMs (Original Equipment Manufacturers), along with a seasoned team of industry professionals specializing in financing and industrial strategy. The main supply chain sectors targeted by the team include commercial and business aviation, the helicopter market, the defense sector and industries with strong growth potential such as drones and space.

Patient Capital Tied to the Aerospace Lifecycle

Thrust Capital Partners will favour the acquisition of majority interests in companies financed by the fund. The team intends to work in partnership with entrepreneurs to implement growth strategies while giving them full operational control. It will therefore be able to help them improve their organizations’ profitability and productivity and develop new markets.

High-Quality Partners

The new fund brings together institutional and private investors who care about the long-term viability of the industry and the Québec companies that comprise it. The fund’s major partners include the Government of Québec via its intermediary Investissement Québec, the Fonds de solidarité FTQ, the Desjardins Group and Distinction Capital.

Thrust Capital Partners also benefits from the valuable counsel of a high-quality advisory committee. Comprising Gilles Labbé, Raymond Bachand, Vincent Duhamel, Réal Bélanger, Paul Raymond and Philippe Nadeau, this committee has an impressive track record in areas such as establishing multinational businesses, private capital management, public policy, mergers and acquisitions, financing and legal practice. The fund’s team is also advised by Jean Wilhelmy on investment matters.

Quotes:

“The Thrust Capital Partners fund is the first specialized investment fund addressing the growth and consolidation needs of SMEs in the aerospace sector. By supporting it, we’re seeking to ensure the long-term growth of this industry, which is of strategic importance to Quebec, and propel our companies into global markets.”

Pierre Fitzgibbon, Minister of Economy and Innovation and Minister Responsible for Regional Economic Development

“Propelling companies from flagship sectors of our economy into the ranks of international leaders is a key element in the role played by the new Investissement Québec. Aerospace is without question one of these industries that promote our expertise abroad and generate substantial economic benefits for Québec. As a representative of the Government of Québec, we’re proud to participate in the launch of this equity fund and thereby help make it more accessible to key players from our aerospace sector to growth capital.”

Guy LeBlanc, President and CEO, Investissement Québec

“The consolidation of companies in the Québec aerospace industry is essential for the sector’s future. The Fonds’ $20 million contribution to Thrust Capital Partners adds to our historical $700 million investment in this industry, which has allowed companies like Abipa Canada to grow in international markets.”

Dany Pelletier, Executive Vice-President, Private Equity and Impact Investing, Fonds de solidarité FTQ

“After more than two years of the pandemic, aerospace companies must take advantage of the gradual recovery to operate at an even higher level once orders are back up to their former pace. To do that, they need to invest and they need support. Desjardins wants to be involved, as our $12.5 million contribution shows. Our range of products and services, combined with Thrust Capital Partners’ advanced aerospace expertise, creates winning conditions for growth projects and for companies from Québec and other parts of Canada to position themselves on the international scene.”

Jean-Yves Bourgeois, Executive Vice-President of Business Services, Desjardins Group

“Aéro Montréal welcomes the creation of a private equity fund devoted to the aerospace industry supply chain. This represents a strong, concrete response to the needs identified by members of the cluster via the Alliance for the Aerospace Recovery, a committee of CEOs formed by the cluster. By serving as a launching pad to stimulate the growth of our SMEs, this fund will complement actions already undertaken by Aéro Montréal and the Accelerator 360° initiative, which aims to support their commercial growth within global supply chains. Together, we are promoting the recovery of Québec’s biggest manufacturing export industry. We’re making proactive efforts to ensure it will continue creating jobs and wealth throughout Québec and the world.”

Suzanne M. Benoît, President, Aéro Montréal

“This new fund will enable aerospace-sector SMEs to expand their size in order to better meet the requirements of major OEMs and compete on the global playing field. This is the ideal moment for the Québec and Canadian aerospace ecosystem to take full advantage of the business opportunities offered by the sector’s recovery.”

Frédéric Loiselle, President, Thrust Capital Partners

About Thrust Capital Partners

Thrust Capital Partners is the first Canadian private equity fund dedicated exclusively to the aerospace industry supply chain. The new fund, which aims to reach a size of $100 million, has already received firm commitments worth $77 million for its initial closing. It represents an ideal launching pad for driving the growth of SMEs in Québec and Canada and accelerating their development into global leaders.