Balmoral Solidifies Investment in Joint Venture Partner
After several years of a successful joint venture partnership, Balmoral Funds has completed an equity investment in KP Aviation (“KPA”), an aerospace aftermarket sale and leasing company based in Reno, NV.
Balmoral began its relationship with Kim and Paul Schulze in 2008. It was only in 2015 when the parties formed the first of a series of 11 joint ventures, called Silver Aero, whereby both the Schulzes and Balmoral provided capital through joint ventures to fund a 74% CAGR in KPA’s revenue.
“The growth in the employee base, product lines, supply chain relationships and expertise of the team are achievements that Paul, our team (including Balmoral) and I are proud of,” said President Kim Schulze. “Balmoral provided the capital, guidance and support that allowed us to expand how and the extent to which we serve the market. That is why what started as a tough decision — as to whether Paul and I would ever sell a significant piece of our company — turned out to be an easy one.”
After several years of partnering together through Silver Aero, the parties formalized a longer-term partnership to fund the significant growth opportunities facing KPA. “I have known and tracked Kim and Paul for over a decade,” said Robin Nourmand, Managing Director at Balmoral. “Even more than their capabilities and achievements, we respect Kim and Paul’s integrity and alignment-orientation. It’s a difference maker. We are humbled and honored by their partnership and entrusting to us a significant ownership stake in KPA.”
As part of this next phase of growth, KPA is working with lenders to provide a revolving credit line. Balmoral would welcome any discussions with lenders who have experience and interest in this sector.
About KP Aviation
KP Aviation acquires assets opportunistically by identifying those that (a) have entered into the mid-life status of their life cycle, (b) are migrating from tier one operators to the secondary marketplace; and/or (c) have reached a point in their life cycle where the sum of their parts is worth more than the value derived from repairing, maintaining and operating them.
About Balmoral Funds
Balmoral is a Los Angeles, CA based private equity fund that was founded in 2005. Balmoral currently has more than $450 million of assets under management and focuses on partnering with talented and committed management teams to invest in and revitalize companies. Balmoral typically invests in companies that have revenues between $30 to $500 million and require equity investments of $10 to $60 million.