Private Credit Fuels National Security with Tenax Aerospace Recapitalization

NEW YORK, NY – January 21, 2026 – In a significant move highlighting the growing intersection of private finance and national security, AEA Investors' Private Debt group has led a junior debt investment to support the recapitalization of Tenax Aerospace. The Mississippi-based company is a crucial provider of special mission aircraft and services to the U.S. government and a portfolio company of NTC Group.

The financing, which also saw participation from MetLife Investment Management, is designed to propel Tenax into its next phase of growth, underscoring investor confidence in the specialized aerospace and defense sector. This transaction not only provides Tenax with crucial growth capital but also reinforces a deepening strategic partnership between AEA Private Debt and NTC Group, marking their third collaboration.

A Strategic Investment in National Security

Tenax Aerospace operates at the critical nexus of aviation technology and public service. Headquartered in Ridgeland, Mississippi, the company provides highly specialized aircraft for missions vital to U.S. national security and public safety. Its services include aerial fire suppression, airborne Intelligence, Surveillance, and Reconnaissance (ISR), and flight services for training and testing.

This is not a peripheral role; Tenax is a key contractor for multiple federal agencies. The company holds significant contracts, including a $230.2 million Indefinite Delivery Vehicle (IDV) to provide aircraft for the National Interagency Fire Center through 2028. It is a major partner to the U.S. Department of Agriculture's Forest Service, providing planes for aerial supervision and night mapping of wildfires using advanced infrared imaging. In fact, the Forest Service accounts for nearly half of the more than $221 million in federal contracts the company has received.

Beyond environmental safety, Tenax's reach extends into national security and law enforcement. The company holds a $29.4 million contract with the FBI to lease a Gulfstream G550 aircraft for supporting global counterterrorism operations. This diverse portfolio of high-stakes government work solidifies its position as an essential, if low-profile, player in the nation's defense and safety infrastructure.

"Tenax plays a vital role in supporting programs that are essential to national security and public safety," affirmed Tom Groves, a Partner at AEA Private Debt. "With its deep technical capabilities, experienced team, and commitment to mission execution, Tenax is well-positioned for long-term success."

The investment comes as the global market for special mission aircraft is projected to expand significantly. Valued at approximately $17.6 billion in 2024, the market is forecast to surge to over $30 billion by 2034, driven by rising geopolitical tensions, increased defense budgets, and a growing need for advanced ISR capabilities.

Fueling the Next Phase of Growth

The recapitalization, anchored by AEA’s junior debt, provides Tenax with the financial firepower to capitalize on this expanding market. This type of financing, which is subordinate to a company's senior debt, is often used to fund growth initiatives without diluting equity ownership significantly. It signals a strong belief from investors in the company's future cash flow and strategic direction.

This investment is part of a broader push to fortify Tenax’s financial foundation. The company recently increased its senior secured credit facilities to $330 million, a move explicitly aimed at supporting its growth and executing on newly awarded government contracts. The new capital from AEA and MetLife will allow Tenax to further expand its fleet, invest in cutting-edge sensor and modification technology, and scale its operations to meet the rigorous demands of its government clients.

For NTC Group, the parent company of Tenax, the transaction is a validation of its investment strategy and a crucial step in realizing the aerospace provider's potential.

"AEA Private Debt brought deep expertise, creative solutions, and a highly collaborative approach to this transaction," stated Taran Bakker, a Director of Tenax and Partner at NTC. "Their ability to move efficiently and align around Tenax's strategic objectives was instrumental, and we value their partnership as the Company enters its next stage of growth."

The Power of Partnership in a Niche Sector

The deal is more than a one-off financial transaction; it is a testament to the power of sustained partnerships in the private investment world. This marks the third time AEA Private Debt has invested to support a company within NTC Group's portfolio, with two of those investments originating from AEA's most recent mezzanine fund. This pattern indicates a deep-seated, programmatic relationship built on mutual trust and a shared vision for the aerospace and defense sector.

NTC Group specializes in a unique investment approach, focusing on family- and founder-owned companies in aerospace, defense, and specialty manufacturing. Unlike traditional private equity models that may prioritize rapid turnarounds, NTC emphasizes long-term growth and the preservation of a company's culture. This philosophy makes it a natural fit for partners like AEA, which describes its own strategy as "partnership-oriented."

By repeatedly providing capital to NTC portfolio companies, AEA demonstrates its confidence not only in the individual businesses but also in NTC's ability to identify and nurture promising assets in this highly specialized market. The inclusion of MetLife Investment Management, a major global institutional investor, adds another layer of validation to the deal's structure and Tenax's long-term prospects.

Private Credit's Expanding Role in Defense and Aerospace

This investment in Tenax Aerospace is emblematic of a larger trend: the increasing importance of private credit in funding the middle-market companies that form the backbone of the U.S. defense industrial base. These firms, often too small for public markets but requiring significant capital for equipment and contract fulfillment, find a willing and flexible partner in private debt funds.

Firms like AEA Private Debt, which has invested over $8.5 billion in more than 425 transactions since 2005, can offer the kind of creative and customized financing solutions that traditional lenders may not. For a company like Tenax, whose revenue is tied to large, long-term government contracts, this flexibility is invaluable.

AEA Investors itself, founded in 1968 by the Rockefeller, Mellon, and Harriman family interests, represents a class of sophisticated, patient capital now playing a pivotal role in sectors critical to the public interest. As government agencies continue to rely on specialized private contractors for essential services, the flow of private credit into the aerospace and defense sector is poised to become an even more crucial element of national readiness and technological advancement.