Long Term Co-Investment

As costs and risks on new programs continue to rise, the original equipment manufacturers (OEMs) are requiring strong partnerships from the beginning of development through aftermarket in order to develop new products. GE Aircraft Engine continues to partner with Safran and Pratt & Whitney continues to partner with MTU, but they are both seeking more partnerships at lower levels within the supply chain. Additional partnerships further reduce the costs and risks of these programs to manageable numbers for their respective corporate parents. This type of partnership is working its way through the entire supply chain from Tier I suppliers down to small piece part providers.

Peter J. Friedman
Five by Five Capital, LLC