Desert Sky Holdings invests in Mojave’s XCOR Aerospace
Mojave Desert News - 08/28/2008
Los
Angeles-based equity firm
SPECIAL TO THE DESERT NEWS
By Bill Deaver
MOJAVE— XCOR Aerospace announced last week that Desert Sky Holdings has become the first institutional investor in the aerospace company. Desert Sky Holdings follows the Boston Harbor Angels investment in XCOR last year, as well as continuing investment from well-known angel investors and industry trend setters such as Esther Dyson.
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ARTIST’S CONCEPTION of the Lynx sub-orbital vehicle being developed by XCOR Aerospace at Mojave Airport/Spaceport. XCOR announced last week that Desert Sky Holdings has become the first institutional investor in the aerospace company. |
Desert Sky Holdings, LLC, is a Los Angeles-based private equity firm that specializes in investments in businesses with revenues of $5 million or less.
"Desert Sky's commitment to XCOR is an important vote of confidence in the company," says XCOR's new Chief Operating Officer, Andrew Nelson, a former Morgan Stanley banker. "Institutional investors tend to be cautious and deliberate when selecting investments because they are investing other people's money and must be able to justify their decisions to their limited partners. This is why they bring a heightened level of due diligence and professionalism to their investment decisions.
Founded in 1999, XCOR is a leading contender in the race to provide low cost space flight with its reliable, re-usable, clean-burning, and safety-oriented rocket propulsion systems. The firm is currently building its third-generation vehicle called the Lynx, which will safely take two people to the edge of space. The Lynx, which will use environmentally benign propellants and carry paying customers or scientific payloads, is scheduled to make its first flight in 2010.
"The managing partners at Desert Sky Holdings have long been interested in the space sector, so we have kept an eye out for opportunities in this revolutionary industry," said Desert Sky Holdings Managing Partner Robert Jacobson. "After extensive due diligence, we believe we have found an industry leader. XCOR has a superior management team that is executing a plan that should lead to successful space flight, as well as stellar returns for our investors."