Key Takeaways
- Sector: Transport Infrastructure & Services (traditional).
- Geography: United States, Europe, Spain, Malta.
Analysis
Tiger Infrastructure Partners has successfully divested its stake in International Aerospace Coatings (IAC), a prominent global provider of aircraft painting and related services. This exit marks the culmination of a strategic value enhancement initiative undertaken by the private equity firm since its initial investment in 2022 through its Fund III.
IAC, recognized for its extensive network of 25 on-airport hangars across North America and Europe, specializes in servicing a diverse clientele including aircraft manufacturers, commercial airlines, and leasing companies. The company's operations are anchored by long-term concessions and a focus on wide- and narrow-body aircraft, positioning it as a critical player in the aviation support ecosystem. The expansion under Tiger Infrastructure's stewardship saw the hangar portfolio grow from 17 to 25 facilities, with strategic additions in key aviation hubs such as Portland, Oregon; Amarillo, Texas; Fort Worth, Texas; Teruel, Spain; and Malta.
The growth trajectory of IAC was significantly bolstered by robust customer demand and the securing of long-term contracts, which have cultivated a stable revenue stream. A key financial milestone achieved during Tiger Infrastructure's ownership was IAC's inaugural investment-grade rating and subsequent debt financing in 2025. This move not only solidified the company's capital structure but also facilitated its expansion and reduced its overall cost of capital, demonstrating a successful deleveraging and optimization strategy.
Emil W. Henry, Jr., Founder, CEO, and CIO of Tiger Infrastructure, highlighted the firm's "Value Creation Playbook" as instrumental in IAC's development. He emphasized the collaborative approach with IAC's management team, led by CEO Martin O’Connell, in transforming the company into a leading infrastructure platform. O’Connell echoed this sentiment, praising Tiger Infrastructure as an exceptional partner that provided both capital and strategic support, enabling accelerated network expansion and enhanced customer service.
The divestiture underscores Tiger Infrastructure's proficiency in executing its build-to-scale strategy within the middle-market infrastructure sector. This transaction follows a period of intense activity for the firm, which has completed over 40 deals in the last 18 months, including six new platform acquisitions totaling approximately $1 billion in enterprise value and the realization of investments in three businesses valued at nearly $6 billion. Recent notable transactions include the acquisition of ELM Utility Services and the pending acquisition of Orbis Protect, both high-growth infrastructure businesses.
This successful exit from IAC, a company characterized by its mission-critical services and strong customer relationships, reinforces Tiger Infrastructure's reputation for cultivating world-class infrastructure assets. The firm's ability to achieve its five-year plan ahead of schedule and attract significant interest from other infrastructure investors speaks to the quality of the platform built and the effectiveness of its investment thesis.