Vertical Aerospace closes $60 million underwritten public offering
11th July 2025
For the past three decades, Bain Capital has been investing in the aviation industry and now owns strategic investments in every facet of the sector. From aircraft maintenance to airline investments, from hard asset deals to transformative joint ventures, the company has built a multi-billion dollar aviation portfolio.
Whether it's turning around Virgin Australia, launching a startup airline like Arajet, or making investments in aerospace components manufacturers or aftermarket repairs businesses, Matt Evans and Bain Capital are not just investing in planes, factories, and airlines – but in the future of global transportation.
Matt Evans currently leads Bain Capital’s aviation investing franchise but he is carrying on the work initiated by two of the firm’s partners – Andrew Carlino and Mike Bevacqua – who commenced the aviation investment platform that he is continuing to grow today, attracted by the stable fundamentals the industry provides. “Our interest in aviation has not only been driven by the personal history of Mike and Andrew but also by the that fact it is a secularly growing sector,” Evans explains. “The global aviation industry grows at a multiple of global GDP and, as the growing global middle class increasingly has access to air travel, that long-term secular growth is one of the real mega trends that the firm is investing in. We've made investments in a number of different areas, but it all comes back to that long term, growing demand for air travel.”
Bain Capital invests in a veritable mosaic of aviation assets. Notable investments span airlines—including Virgin Australia, Icelandair, and Arajet—aircraft lessors such as Griffin Global Asset Management, Titan (a joint venture with Atlas Air), Windward Air Capital, and Jetstream; as well as aftermarket and component manufacturing through ITP Aero, Redwire, and MRO Holdings. “Our investments are highly complementary – this is the way we typically approach all sectors,” says Evans. “We like to have a deep understanding of the trends, and all the different people and companies that are active leaders in the industry. By investing in the entire aviation ecosystem, from the airline industry to manufacturing to service companies, such as maintenance providers and pilot training businesses, we gain invaluable industry insights. This approach allows us make the best informed investment decisions as possible.”
When investors consider the aviation sector, they typically think of airlines that are traditionally viewed as high risk. With its deep sector understanding, Bain Capital realises the industry is much broader, as Evans explains further: “Airlines have their own specific risks like any other aviation sub-sector. The risk profile of any individual transaction varies significantly depending on sub-sector, jurisdiction and multiple other characteristics but overall the industry has grown considerably over the longer term and if you pick well positioned businesses, there are ways to make attractive investments across the space.”
Aviation is a global industry, making it susceptible to macroeconomic and geopolitical shocks, which are often difficult to predict. However, this global nature is also its greatest strength, as Evans explains: “Global air traffic is roughly evenly distributed across Europe, Asia, the Middle East, and the Americas. So, if one region experiences a disruption, the overall industry tends to remain relatively resilient. We saw this during the financial crisis and after 9/11—while there was certainly an impact, the industry's global footprint allowed it to absorb region-specific shocks more effectively.”
Evans adds that the one major exception was the COVID-19 pandemic, which was a truly global event. “That had a synchronized impact across the entire world; there was really nowhere to hide. But overall, we appreciate that the aviation industry, by its nature, is globally diversified and therefore not overly exposed to any single geopolitical event.”
Asia remains the primary driver of future growth for the aviation industry, which Evans describes as the “epicentre” of expansion, where Bain Capital already has a strong presence. “Our team has been deeply engaged in Asia for years, with many investment professionals on the ground to stay closely connected to local developments,” he says. “Although Asia’s recovery from the pandemic was slower due to prolonged travel restrictions, it has now largely rebounded. With ongoing population growth, the region presents compelling investment opportunities. While we explore global prospects, Asia remains a key focus given its dynamic growth story.”
Bain Capital has been active in many sub-sectors within aviation around the world. The company now owns three airlines across three continents – Virgin Australia, Icelandair and Arajet – but has also been active across the manufacturing supply chain for engines and airframes, as well as heavy maintenance firm MRO Holdings and a parts trading company in the USA, and even a pilot training business in Australia. “We have touched many parts of the industry, and there are additional parts of the services segment where we would love to invest,” says Evans, pointing to more companies that provide aftermarket services or technology services for aviation that would similarly benefit from the growing global fleet.
On the podcast, Evans goes into more detail on the reasons behind Bain Capital’s decision to invest in those three particular airlines, varied in terms of business model, which speaks to the company’s ability to evaluate very different investment opportunities. Despite those differences, the investment fundamentals remain consistent – a competitive cost structure, strong employee and customer relationships, a clear long-term roadmap for growth, and a strong balance sheet. Evans adds that since the aviation sector is not as stable as other industries, companies that participate in this sector “need to be prepared for volatility” but he adds that so long as these business have “the right leadership team, the right customer value proposition, the right cost structure, the right relationships with employees, and the right balance sheet, they can handle any volatility that potentially comes their way”.
Bain Capital’s heightened interest in the aviation aftermarket emerged due to the structural undersupply of aircraft Evans sees persisting for many years – “over the next decade plus” that will ensure demand for aircraft remains high. That supply-demand imbalance is driving the current hot market for used aircraft even as manufacturers slowly recover production rates. Bain Capital has invested in aero component manufacturer ITP Aero, aircraft maintenance provider MRO Holdings (MROH), as well as Redwire, the satellite and space component manufacturer. Evans describes the thesis behind each investment in detail on the podcast, highlighting the appeal of aviation assets, whose value is rising due to current supply constraints. He also draws parallels to the emerging and fast-growing space industry, which shares similar supply-demand dynamics that make aviation so compelling.
“We try to drive insights across all of our portfolio, but in most cases the businesses operate completely separately,” explains Evans, adding that the Bain Capital investment team does benefit from the knowledge gained from investing in multiple companies.
Since Evans expects the supply-demand imbalance to persist for many years, he believes this “mega trend” could continue to generate investment opportunities in the sector. He also highlights the ageing global aircraft fleet as another key area of focus.
“The ageing fleet is partly a result of underproduction in recent years, which has led operators to extend the service life of existing aircraft. This, in turn, drives increased demand for maintenance and spare parts,” he explains. “There are compelling investment opportunities across both of these themes.
“The reality is that this is no secret. We’re not alone in recognising the appeal of aerospace manufacturing and the companies supporting the aftermarket. As a result, competition for these assets is intense.”
Bain Capital may be more familiar to readers of Airline Economics for its investment in aircraft leasing. In January 2020, during the Airline Economics Growth Frontiers Dublin conference, Bain Capital and Griffin Global Asset Management (Griffin) announced the creation of a new joint venture to develop a new commercial aviation leasing and asset management platform. The long-term strategic partnership was developed with the aim to capitalise on the demand for commercial aircraft. Under the partnership, Bain Capital provides capital to acquire and lease aviation assets, while Griffin, formed by longtime aviation executive Ryan McKenna, provides all lease management services for the platform. The company has grown rapidly to create an aviation leasing platform with a portfolio of approximately 79 owned and committed aircraft leased to 19 airlines in 13 countries, with a net book value of $4.8bn.
Another JV, Windward Air Capital, was formed as an aircraft investment platform focused on acquiring young Boeing and Airbus aircraft with long remaining leases to global airlines.
Bain Capital and Titan Aviation formed a joint venture called Titan Aircraft Investments in 2019 to build a diversified freighter aircraft leasing portfolio worth approximately $1bn. Bain Capital and Titan have provided equity capital, with Titan handling aircraft management, to capitalise on the growing demand for cargo aircraft driven by e-commerce and express delivery services.
Bain Capital also invested in the regional aircraft section with a minority investment in Jetstream Aviation Capital, which specialises in leasing commercial regional aircraft and engines.
Investing in aircraft leasing is viewed as a particularly stable and attractive segment within the aviation industry due to its unique risk-reward profile. Unlike operating companies, leasing involves hard assets—aircraft—with long-term contractual yields, offering predictability and lower volatility. While the returns may be more capped compared to high-growth operating businesses, they are also more consistent and less susceptible to market fluctuations, making leasing a compelling option for investors seeking steady income.
Bain Capital’s strategy hinges on partnering with best-in-class teams who possess deep expertise in specific asset classes. Evans explains on the podcast how each leasing platform investment is tailored to a distinct market segment. For instance, Griffin focuses on young, new-technology passenger aircraft and is managed by a seasoned team with diverse industry backgrounds. Titan, in partnership with Atlas Air, specialises in freighter aircraft and has delivered strong results over the years. Despite their differences, all platforms share the foundational principle of investing in tangible aviation assets, each offering a unique angle within the broader leasing ecosystem.
For Evans, the aircraft leasing market will continue to dominate the aviation sector as the leased aircraft market share continues to increase as production rate growth remains stunted. The combination of these two factors—high leasing penetration and rising production—means there is a strong and growing demand for capital to finance aircraft deliveries. Evans expects this trend to persist over the coming years as production continues to ramp up and leasing remains prevalent.
Over the past decade, the makeup of capital providers in the industry has evolved. Previously, large, permanent balance sheet leasing companies—often backed by banks or insurance firms—dominated the space. However, regulatory capital requirements have made leasing less attractive for many banks, leading some to scale back or exit the sector. In their place, investment funds and alternative platforms, like the one Evans represents, have stepped in to fill the gap. He sees this shift as creating new opportunities for growth and investment, even though the environment remains competitive.
Evans sees aviation as a major global megatrend, driven by sustained growth in air travel, especially as the global middle class expands. As a result, Bain Capital is actively seeking well-structured, well-priced investment opportunities across three main areas: manufacturing, due to structural shortages in the aerospace supply chain; aftermarket services, where demand is expected to remain strong; and hard assets, such as aircraft, where leasing is now a mainstream and growing financing model.
Bain Capital is a long term investor in the aviation space. Evans notes that the firm typically looks to hold assets for 5–7 years, but always with a view toward understanding the outlook over a 10+ year horizon. This includes anticipating how future owners will value the asset. The firm positions itself not as a trader, but as a long-term business builder that relies on the structural fundamentals of the aviation industry.
Looking even further ahead, Evans sees a number of emerging opportunities although noting Bain Capital’s investment philosophy leans toward more mature, well-understood companies rather than early-stage disruptors. Evans explains that while they monitor innovation—such as alternative propulsion systems, sustainable aviation fuel (SAF), and supersonic technologies—the company’s preference is for businesses with proven models and predictable outlooks. This approach allows them to better assess risk and align with long-term structural trends in aviation.
Although Bain is cautious about investing directly in the newest technologies, Evans remains attentive to how these trends might impact the existing portfolio or create future opportunities. For instance, the firm is closely watching developments in SAF and propulsion, and have already made some investments in the space sector, which Evans sees as a nascent but promising area. However, he reiterates that aviation is a slow-moving, highly regulated industry, where change takes time due to safety and technological complexity.
One of Evans’ key insights is the deep interdependence within the aviation value chain. A disruption in one area—such as a slowdown in aircraft production—can ripple across the entire ecosystem, affecting aftermarket services, leasing rates, and maintenance demand. This interconnectedness reinforces the importance of a holistic investment approach and staying attuned to shifts across the sector.
When asked what keeps him up at night, Evans points to a range of concerns—from geopolitical tensions and tariffs to oil price volatility and the performance of individual businesses. However, he emphasises that Bain Capital’s global, multidisciplinary team shares these concerns collectively, allowing for a more comprehensive and resilient investment strategy.