A team of seasoned industry professionals, including a former U.S. Navy SEAL, has come together to launch Axle Point Capital, a new private equity firm specializing in diversified industrials and business services. Based in Newport Beach, this buyout firm leverages its extensive experience in private equity and in-depth knowledge of the lower middle market to guide its investment strategy and operations.
Axle Point Capital stands out as one of the few private equity firms in California with substantial operational expertise in the complex federal military and defense sectors. This expertise is backed by the principals’ well-established network in Washington, D.C., and their successful track record in acquiring, managing, and selling companies, such as the emergency government services provider Ellipse Global.
Reflecting the firm’s strategic focus, Managing Partner Gerik Degner has recently returned from Ukraine, where he explored the latest advancements in Electronic Warfare (EW) technologies and military applications. He will collaborate with Axle Point Principal Jacob Call, a respected former Navy SEAL with a decade of experience, and COO/Chief Legal Officer Tricia Desmarais, an accomplished operator and attorney specializing in regulated industries, to identify prime investment opportunities.
The firm’s junior team includes Associate Quentin Palazzo, who brings a strong background in principal investing and investment banking across diverse sectors, including technology, media, and telecom.
Axle Point Capital enters Southern California’s thriving aerospace and defense sector, home to major players like Boeing, Lockheed Martin, Raytheon, and Anduril Industries. This sector is increasingly attracting investments, particularly in defense technology, with approximately $500 million in venture capital funding flowing in over the past five years, according to Pitchbook data.
While the firm’s location in Southern California offers numerous regional acquisition opportunities, its operational reach extends across the U.S. Aerospace, defense, and national security sectors will constitute the majority of its diversified industrials portfolio.
“We are seeing numerous attractive investment opportunities in aerospace and defense, particularly in satellite, space, naval, and autonomous technologies,” said Mr. Degner.
Government services will form the backbone of the firm’s business services investment platform. Like its industrials investments, many of these companies operate in highly regulated environments.
Mr. Degner concluded, “By combining our investment and operational expertise with exceptional management teams within our portfolio companies, we are well-positioned to navigate these complexities and create lasting value for all stakeholders.
