Houlihan Lokey Advises Top Aces

Houlihan Lokey is pleased to announce the successful placement of C$100 million of common equity for Top Aces Inc., a portfolio company of Clairvest Group Inc. (Clairvest). Proceeds will be used primarily for growth capital in support of the recently awarded US$6.4 billion U.S. Air Force Combat Air Force Contracted Air Support (USAF CAF CAS) contract. The transaction closed on November 26, 2019.

Founded in 2000, Top Aces is a leading global defense contractor offering contracted airborne training services to the U.S., Canadian, German, and other armed forces around the world. The company owns and operates one of the largest privately held combat fighter aircraft fleets in the world in support of adversary, air defense, and joint terminal attack controller (JTAC) mission services. Top Aces is based in Montreal, Quebec, with a wholly owned U.S. subsidiary based in Mesa, Arizona, as well as a European main operating base in Wittmund, Germany.

The USAF CAF CAS contract is the first of its kind and the largest global outsourced air support contract in the world. Awarded to an exclusive group of industry participants, the contract is a combined US$6.4 billion indefinite-delivery/indefinite-quantity (IDIQ) vehicle for advanced adversary air training. Top Aces was selected to support the contract, which will require expanding the company’s current global fleet of subsonic and supersonic aircraft with advanced capabilities. The USAF CAF CAS award is the result of a significant supply and demand imbalance of capable assets and services to support advanced adversary training, and it positions the few industry providers (including Top Aces) for unprecedented growth.

Founded in 1987 by a group of successful Canadian entrepreneurs, Clairvest is a top-performing private equity management firm with more than C$2.4 billion of capital under management. Clairvest invests its own capital—and that of third parties through the Clairvest Equity Partners limited partnerships—in owner-led businesses that have the potential to generate superior returns. Clairvest’s mission is to partner with entrepreneurs to help build strategically significant businesses. Under the current management team, Clairvest has initiated investments in 50 platform companies.

Houlihan Lokey served as the financial advisor and placement agent to Top Aces and Clairvest.