In a recent ION Influencers fireside chat, Kirk Konert, Managing Partner at AE Industrial Partners, shared his insights on identifying investment opportunities in the national security sector. Here is the key takeaways:

Navigating Political Changes:

• Investment Stability: Investments in defense and technology sectors focus on bipartisan-supported areas like AI, space, and cybersecurity to ensure stability despite political shifts.
• Relationship Building: Building lasting relationships across government branches helps maintain consistency regardless of political or administrative changes.

Long-term Market Trends:

• Adapting to Trends: AE monitors short-, medium-, and long-term market trends, especially in tech sectors like cybersecurity, to avoid reactionary moves based on shifting administrations.
• Customer Engagement: Establishing relationships at various levels, from agencies to primary contractors, secures AE’s understanding of market needs and supports sustained partnerships.

Understanding Customer Needs:

• Comprehensive Communication: AE engages with all stakeholders, from subcontractors to main contractors, ensuring a deep understanding of end-customer (U.S. government) needs.
• Supply Chain Involvement: AE invests across the supply chain, from component suppliers to OEMs, allowing it to maintain valuable touchpoints throughout and stay aligned with industry requirements.

Key Timestamps:

00:09 Introduction to the Fireside Chats
01:19 History of AE Industrial Partners
02:46 The Shift from Generalist to Specialist
04:46 Opportunities in National Security Investing
07:06 Government Influence on Investments
09:19 Navigating Political Changes
11:00 Long-term Market Trends
12:05 Understanding Customer Needs
14:07 Technology Risk in Investments
16:37 Key Milestones for Investment Success
19:08 Importance of Management Teams
21:12 The Evolving IPO Landscape
23:23 Trends in Buy and Build Strategies
25:33 Strategic Acquisitions and Market Dynamics
27:16 The Role of Private Credit in Competition