Origination

KP Aviation is a leading global supplier of essential aftermarket materials and services. Founded in 2001, the company has grown steadily since its inception, benefiting from the global tailwinds in aviation material reuse, also known as used serviceable material (USM), which were accelerated by ongoing supply chain shortages.

In 2022, the company sought to bring on an experienced partner to help drive its transformation into a sophisticated, full-service end-of-life commercial aviation platform, noting Bain Capital’s investment depth across the aerospace value chain.

Opportunity and investment

At the time of the investment, aerospace supply chains were particularly disrupted, resulting in outsized demand and creating opportunity for KP Aviation within its focal market area. USM offers a compelling value proposition: parts are manufactured by the OEM, retain full asset value, and are significantly less expensive and often more readily available than new OEM replacements. With locations in Europe, South Africa, and China, KP Aviation was poised to meet the growing needs of aviation customers worldwide.

Being 100% FAA/EASA certified meant KP Aviation’s operations and parts fully meet both US and European aviation safety standards, ensuring global compliance, building customer trust, and positioning the company as a high-quality, internationally recognized supplier in the aircraft components market.

Our industry experience and hands-on value-creation strategy positioned us as KP Aviation’s partner of choice for driving incremental value in a market with strong thematic momentum.

Value creation

Since our investment, we have supported the management team in building out the organization, strengthening leadership roles, and expanding core commercial and operational functions. Under our ownership, we have doubled the size of the business and facilitated a strategic business model pivot to secure a predictable stream of aircraft parts, reducing volatility through market cycles. We have also promoted the implementation of robust processes to facilitate responsible growth while monitoring risk, positioning KP Aviation to continue growing as a differentiated leader in the industry.

“In Bain Capital, we have found an aligned partner with deep aviation experience and operational capabilities to help us further scale our platform, foster new customer and supplier relationships, and diversify into new service lines and capabilities through a mix of organic and strategic growth initiatives.”¹These endorsements are provided by certain CEOs and or founders of investments held by certain investment vehicles advised by Bain Capital affiliate investment advisers. None of these CEOs and or founders were directly compensated for providing these endorsements, however, the funds have made investments into such CEOs and or founders’ companies. As a result of this investment, a conflict of interest exists because the CEOs and or founders have an incentive to make positive statements about Bain Capital and their experiences with Bain Capital to maintain the goodwill with Bain Capital.

Kim Schulze / Co-founder and former CEO/ KP Aviation

“Our longstanding partnership with KP Aviation has reinforced our conviction in the company’s highly differentiated business model, which combines the acquisition, disassembly, and leasing of aviation assets to deliver critical aftermarket components to a global customer base. We are proud to work alongside this team as they continue to build on an impressive track record and execute on the company’s next phase of growth.”

Matthew Evans / Partner / Bain Capital