StandardAero, the aviation maintenance company backed by Carlyle Group [NASDAQ:CG], is receiving interest from at least a handful of financial sponsors, said three sources familiar with the matter.

Bain Capital is among the private equity firms showing interest in the Scottsdale, Arizona-based company, the same sources said.

Bloomberg reported last week that Blackstone [NYSE:BX] and CVC Capital Partners could bid for StandardAero. Veritas Capital was also showing interest, the report said. The sources confirmed these three sponsors were showing interest in StandardAero.

These sources said to their knowledge no strategic is showing interest in StandardAero.

The company could reportedly be valued at over USD 10bn in enterprise value. An earlier Bloomberg report from April said Carlyle Group had hired JPMorgan and Morgan Stanley to assess options for StandardAero. Two of the sources confirmed these bankers were hired as well.

Given the deal size, private equity firms are likely to partner up to acquire StandardAero, each of the sources said. StandardAero had fireside chats with interested suitors over a month ago, two of these sources said.

A fourth source familiar with the matter said that while the company has received strong interest from potential buyers, an IPO continues to be an option for StandardAero. Two of the sources also noted an IPO remains a strong potential endgame for StandardAero if it doesn’t get enough value in a sale.

One of the sources pointed out that were StandardAero to pursue an IPO, it is expected to trade at an attractive multiple given its strong financial performance and outlook, particularly in addressing the specialist maintenance, repair, and overhaul (MRO) needs of commercial and military aircraft fleets.

Conversely, a sale could be a tremendous value creation option, an ECM banker said, highlighting the significant transaction activity in the aerospace and defense sector in recent years, with attractive multiples being paid for MRO businesses. This news service reported in June that Sunvair Aerospace, a provider of aircraft component MRO services, sold to Greenbriar Equity Partners for at least 10x EBITDA.

The ECM advisor also noted that, with a sale, investors avoid the risk of a drop in stock price while their shares are locked up for around six months after an IPO.

One of the sources, a fifth source and a sector banker said the company generates around USD 650m to USD 700m in EBITDA. The fifth source and the sector banker said the company can support leverage at 6x-6.5x.

Both the advisor and the fifth source said that a deal, if struck, is more likely to be financed by a bank syndicate give the size of the transaction. In addition, a buyer can raise bank financing at roughly SOFR +375bps versus raising money through direct lenders, who are offering terms at around SOFR +475-500bps.

StandardAero, Carlyle Group, Veritas Capital and Blackstone did not return requests for comment. Bain Capital, CVC, JPMorgan and Morgan Stanley declined to comment.