Secondary Buyout • Aerospace

Veritas Capital Exit StandardAero

On December 18, 2018, private equity firms The Carlyle Group and Goldman Sachs Merchant Banking invested in aerospace company StandardAero from Veritas Capital

Investment Context
  • This is The Carlyle Group’s 17th and Goldman Sachs Merchant Banking’s 2nd transaction in the Aerospace sector.
  • This is The Carlyle Group’s 306th and Goldman Sachs Merchant Banking’s 110th transaction in the United States.
  • This is The Carlyle Group’s 6th and Goldman Sachs Merchant Banking’s 4th transaction in Arizona.
Investment Fate
  • StandardAero went public in 2024.

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Investment Summary

Date December 18, 2018
Target StandardAero
Sector Aerospace
Investor(s) The Carlyle Group
Goldman Sachs Merchant Banking
Sellers(s) Veritas Capital
Deal Type Secondary Buyout
Advisor(s) Goldman Sachs
Morgan Stanley (Financial)
Skadden, Arps, Slate, Meagher & Flom (Legal)

Target Company

StandardAero

Scottsdale, Arizona, United States
StandardAero is an independent maintenance, repair, and overhaul (MRO) provider. The Company offers extensive MRO services and custom solutions for business aviation, commercial aviation, military, and industrial power customers. StandardAero was founded in 1911 and is based in Scottsdale, Arizona.
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Investors Overview 2

Investor

The Carlyle Group

Washington, District of Columbia, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1987
PE ASSETS 435.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
Carlyle's corporate headquarters on Pennsylvania Ave. in Washington, DC.
Carlyle's corporate headquarters on Pennsylvania Ave. in Washington, DC.

The Carlyle Group is a global investment firm that pursues private equity, credit, and real estate investments worldwide. Carlyle's private equity practice practice pursues buyouts, strategic minority equity investments, equity private placements, consolidations and buildups, and growth capital financings. With offices in 19 countries, Carlyle can easily target opportunities throughout North America, Europe, Asia, Australia, the Middle East/North Africa and Latin America. Broad sectors of interest include aerospace, defense, automotive and transportation, consumer, retail, energy and power, financial services, healthcare, industrial, infrastructure, technology services, business services, telecommunications and media. The Carlyle Group was formed in 1987 and is based in Washington DC.


Deal Context for Investor #
Overall 633 of 750
Sector: Aerospace 17 of 18
Type: Secondary Buyout 97 of 130
State: Arizona 6 of 6
Country: United States 306 of 350
Year: 2018 24 of 26
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-12-10 Accelerate Learning

Houston, Texas, United States

Accelerate Learning provides a variety of curriculum and professional development solutions for PreK-12 that support early learning, Next Generation Science Standards (NGSS), and state-aligned curriculum. Accelerate Learning was established in 2014 and is based in Houston, Texas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-12-19 Odyssey Behavioral Healthcare

Brentwood, Tennessee, United States

Odyssey Behavioral Healthcare is a provider of behavioral health facilities across the treatment spectrum in psychiatric and addiction care. Odyssey Behavioral Healthcare was founded in 2015 and is based in Brentwood, Tennessee.

Buy -
Investor

Goldman Sachs Merchant Banking

New York, New York, United States

Investor


Category Private Equity Firm
Founded 1986
PE ASSETS 155.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Goldman Sachs Merchant Banking Division is the investment arm of Goldman Sachs. The primary corporate investment group within the Merchant Banking Division is Goldman Sachs' direct investment arm. GS's direct investment arm consists of GS Capital Partners, GS Mezzanine Partners, and GS Growth Partners. GS Capital Partners is the direct corporate equity investment group which seeks LBO, recapitalization, and growth investments to help fund acquisitions, expansions, recapitalizations, restructurings, buyouts, and take privates. GS Capital Partners looks to invest between $50 and $800 million in opportunities in North/South America, Europe, Asia. GS Mezzanine Partners is the junior capital arm of Goldman Sachs. GS Mezzanine looks to invest between $200 million and and $800 million in transactions valued up to $10 billion. Investment proceeds are used to fund leveraged buyouts, expansion financings, recapitalizations, acquisitions, and restructurings. GS Growth looks to invest in growth equity transactions. The unit seeks to commit $20 to $200 million per investment. Other units within GS's merchant banking division include Real Estate, Infrastructure, and Urban Investments. Goldman Sachs Merchant Banking Division is based in New York City.


Deal Context for Investor #
Overall 157 of 189
Sector: Aerospace 2 of 2
Type: Secondary Buyout 53 of 68
State: Arizona 4 of 4
Country: United States 110 of 130
Year: 2018 13 of 13
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-11-06 Splash Car Wash

Milford, Connecticut, United States

Splash Car Wash is an operator of car washes with 18 locations in New York and Connecticut. The Company offers full service, hand wash, express, and self-service alternatives, as well as oil and lube services at premier locations. Splash Car Wash was formed in 1981 and is based in Milford, Connecticut.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-01-31 HealthMarkets

North Richland Hills, Texas, United States

HealthMarkets is an independent field marketing organization (“FMO”) for health insurance and supplemental products. HealthMarkets was founded in 1983 and is based in North Richland Hills, Texas.

Sell -

Seller Profile 1

SELLER

Veritas Capital

New York, New York, United States

Category Private Equity Firm
Founded 1992
PE ASSETS 50.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Veritas Capital is a private equity investment firm that targets investments in defense, aerospace, government services, media/telecommunications, consumer products, and specialty manufacturing companies. Veritas generally partners with management when pursuing investments. Prospective transaction situations include buyouts, growth capital investments, and leveraged recapitalizations. Veritas Capital was established in 1992 and is based in New York, New York.


Deal Context for Seller #
Overall 18 of 28
Sector: Aerospace 2 of 2
Type: Secondary Buyout 6 of 8
State: Arizona 1 of 1
Country: United States 18 of 28
Year: 2018 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-11-12 athenahealth

Boston, Massachusetts, United States

athenahealth is a provider of Internet-based business services for physician practices. The Company's service offerings are based on proprietary web-native practice management and electronic health record (EHR) software, a continuously updated payer knowledge-base, integrated back-office service operations, and live patient communications services. athenahealth was founded in 1997 and is based in Boston, Massachusetts.

Buy $5.7B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-02-20 Centricity Contingent Staffing

Hartford, Wisconsin, United States

Centricity Contingent Staffing is a provider of human capital management solutions to the healthcare industry including time and attendance, staffing and scheduling, patient classification, payroll, human resource, productivity management and education tracking software.

Sell -