Investment in aviation: private equity firms set to invest more - new research

Investment in aviation: private equity firms set to invest more - new research

Posted 04 March, 2019 at 14:46

Author Mark Bradshaw on behalf of PROnounce Admin


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   RESEARCH REVEALS PRIVATE EQUITY IS SET TO INVEST MORE IN THE AVIATION SECTOR

New research from Revolution.Aero, the global meeting place for people who are reshaping, rethinking and revolutionising business and personal aviation, amongst private equity and venture capital professionals reveals that 69% expect the amount of money their industries invest in the aviation sector to increase between now and the end of 2020, and just 4% expect it to fall.  The corresponding figures for the next five years are 73% and 12% respectively.

The aviation sector is currently a hotbed of innovation with on-going projects looking at electric aviation, air taxis to supersonic jets, all topics that will be discussed at Revolution. Aero’s first European meeting which takes place in London on 11 to 12 March 2019 at The Royal Garden Hotel.

In terms of which new aviation areas private equity and venture capital professionals find most exciting, 85% described vertical take-off and landing aircraft (VTOL) such as air taxis as attractive, which is closely followed by 84% who say this about the use of drones in the freight industry.  Electric planes, pilotless aircraft and supersonic jets are also seen as potential attractive investment opportunities.

Area of aviation

Percentage of PE/VC professionals who see this as  very attractive

Percentage of PE/VC professionals who see this as  quite attractive

Percentage of PE/VC professionals who see this as  unattractive

Don’t know

The use of drones in the freight industry

62%

23%

15%

0%

Electric aircraft

35%

27%

27%%

12%

Vertical take-off and landing aircraft (VTOL)

23%

62%

8%

7%

Supersonic aircraft

19%

35%

31%

15%

Pilotless aircraft

8%

54%

31%

8%

     

As for the factors that make aviation appealing to professional investors, 54% of private equity and venture capitalists said the growing need to find ways to reduce costs and emissions within the freight industry is ‘very important’, and this was followed by 46%  who said this about the need to find cleaner ways of traveling, and 38% who said this about the growing number of people who want to fly.

Factors that make aviation appealing to professional investors

Percentage of PE/VC professionals who see this as  very important 

Percentage of PE/VC professionals who see this as  quite important

Growing need to find ways to reduce costs and emissions in the freight industry

54%

31%

Need to find cleaner ways of travelling/reduce emissions

46%

31%

Growing number of people who want to fly

38%

42%

Need to tackle growing urban transport problems

35%

42%

Growing government/regulatory support to change the industry 

27%

54%

Technological developments making it easier to fly much faster e.g. supersonic

23%

54%

Pilot shortage

23%

54%

 

 Alasdair Whyte, co-founder, Revolution.Aero said: “Our research shows that professional investors are well aware of the huge developments taking place in aviation at the moment, and the growing list of exciting projects that hope to revolutionise all aspects of the industry.

“We will have a number of private equity and venture capital professionals attending our conference, with a potential eye on investing in some of the 200 plus senior executives of the disruptive aviation companies we are hosting at our London conference next month.”

Revolution. Aero’s first European meeting is in London on 11 to 12 March 2019 at The Royal Garden Hotel.

Some 200+ aviation professionals will be attending, including more than 50 founders or chief executive/C suite level.  There are also over 20 professional investors and investment firms attending.  

If you would like a press pass please email rebecca@corporatejetinvestor.com

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