Private equity investor profile: Directional Aviation Capital
Kenn Ricci’s Directional Capital invests up to $20 million in each deal and exclusively focuses on private aviation. Its portfolio includes Flight Options, Nextant, Sojourn Aviation and Constant Aviation.
Kenn Ricci’s Directional Capital invests up to $20 million in each deal and exclusively focuses on private aviation. Its portfolio includes Flight Options, Nextant, Sojourn Aviation and Constant Aviation.
Kenn Ricci’s Directional Capital invests up to $20 million in each deal and exclusively focuses on private aviation.
Private equity investor: Directional Aviation Capital
Having made money in business aviation Directional Capital’s Kenneth Ricci and Mike Rossi think it makes sense to keep investing in the same field.
Ricci is best known for founding Flight Options, the US fractional operator, which he sold to Raytheon in 2002. “After we sold Flight Options we kept being offered other investments outside of aviation but didn’t feel comfortable with them. Mike Rossi and I had spent so much time in this market it made sense to use this knowledge rather than invest in another market we didn’t know.”
As well as Flight Options Ricci launched Corporate Wings, an aircraft charter and management company, which he founded in 1980 and Inertial Airline Services, a maintenance company.
Directional owns stakes in: Flight Options, which Ricci bought back in2008; Nextant Aerospace, which has a programme to upgrade Beechjet 400A and Hawker 400XPs; and Constant Aviation, the business aircraft maintenance company. The fund also invested in Mercury Air Centers, a $200 million fixed based operations company which it sold to Macquarie Infrastructure Trust in 2007 for $615million. It also sold its stake in Inertial.
It’s latest project is Sojourn Aviation a broker that Directional is financing.
Corporate Jet Investor: What is your investment strategy?
Ricci: Our mission is to only invest in private aviation. Directional likes to co-invest and limit its own equity to no more than $20 million per investment. We like working with other funds and can also advise them.
What is your exit strategy?
Ricci: I guess we are a bit different to most funds in that we don’t worry too much about the exit. We sold Flight Options to Raytheon and Mercury to Macquarie but we are also happy owning profitable businesses.
Which is more fun, setting up on your own with Corporate Wings or investing in various companies with Directional?
Ricci: Both are fun. I really enjoy what I am doing now. One of the biggest factors issues when you are starting out is fear of failure so you have that stress. It is not such a worry now.
