The necessity for better resiliency within the protection provide chain is actual and pressing. One space the US authorities has been specializing in is constructing a sooner and extra sustainable elements provide by way of superior additive manufacturing (AM), onshored within the US. This was the motivation behind the Stifel North Atlantic AM Ahead Fund — a collaboration between North Atlantic Capital Administration (North Atlantic) (a Stifel firm), ASTRO America, the Small Enterprise Administration (SBA), and the Division of Protection (DoD) — aimed toward accelerating the protection provide chain by way of debt investments in small US producers.
In April 2025, I had the prospect to sit down down with Mark Morrissette, a Managing Director at North Atlantic, and Jason Gorey, a Director of Investments at North Atlantic and Director at ASTRO America, to debate the Fund and the sorts of corporations they’re seeking to assist.
“The aim of the Fund is to spend money on small companies within the protection provide chain wanting so as to add or enhance their AM manufacturing,” mentioned Morrissette. “We wish to onshore manufacturing, enhance the protection provide chain, and advance the know-how utilized in that provide chain, particularly for aerospace, protection, and marine purposes.”
Mark Morrissette, Managing Director at North Atlantic. Picture courtesy of North Atlantic.
After elevating capital from strategic and institutional buyers, and gaining the required regulatory approvals from the SBA and the DoD, the AM-Ahead Fund positioned its first funding in February 2025 with Sintavia, a Florida-based AM elements manufacturing specialist and self-described “world’s main all-digital aerospace element producer.”
In truth, Morrissette famous that Sintavia is a perfect goal for the Fund: “Sintavia is a superb mannequin of what we’re in search of. The goal is US-based manufacturing companies working anyplace within the superior/AM worth chain — design, powder, half manufacturing, and post-processing. Many of the companies we count on to spend money on could have lower than $10 million in annual earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA).”
Whereas present AM expertise is most well-liked, they may even contemplate established producers working to undertake metallic AM, particularly these with present (conventional) contracts from the DoD.
Gorey outlined the Fund’s total necessities:
- Expertise throughout the protection aerospace provide chain, displaying the capability to scale;
- Confirmed, assured management with a observe file of success implementing enterprise plans;
- AM expertise is a plus, however not a requirement; and
- Conventional producers with vital roots within the protection house seeking to undertake or develop into metallic AM.
Gorey added that present funding casting homes desirous to 3D print casting patterns may also curiosity the Fund, since this may speed up casted half manufacturing.
The AM Ahead Fund makes use of a spread of financing buildings tailor-made to the precise wants of small companies. In contrast to conventional loans or fairness financing, it’s primarily “a development funding,” mentioned Morrissette.
“It’s usually structured as affected person, long-term debt with some fairness options — not buyouts, not enterprise capital. Small producers typically have entry to tools financing–sort debt, however have bother accessing the extra capital they want,” he famous.
A key purpose of the Fund is to allow working capital, versus simply shopping for a machine.
Jason Gorey. Picture courtesy of ASTRO America.
“That is, for probably the most half, supposed to be working capital. It provides the flexibility to fund coaching, hiring, and elements {qualifications} which might be so costly,” mentioned Gorey. “This funding can be utilized to handle the entire drawback, not simply shopping for a machine. It will probably cowl issues like specialised labor, qualifying a machine, materials, and course of improvement, design prices, and post-processing. We envision that it’s going to assist corporations implement AM and begin returning income.”
However how does a producing firm even begin the method with the AM Ahead Fund?
“We don’t have a proper software course of, however we do observe and analysis corporations throughout the business that could be an excellent match and method them,” mentioned Morrissette. “We additionally obtain leads from our strategic buyers, who’re DoD prime contractors. To get began, we’re usually in search of an outline presentation that describes the present enterprise and the plans for the long run. We have now a web page the place firm principals can ship a marketing strategy for us to overview.”
If the preliminary evaluation of the marketing strategy appears promising, firm managers ought to count on a relationship-building section. Whereas firm credentials and particular person experience are essential, the fund managers are as , if no more so, in having a strong relationship with the goal firm.
“Previous to funding, it was simply as essential for us to develop an excellent working relationship with the North Atlantic group because it was for them to develop a relationship with us,” mentioned Brian Neff, CEO of Sintavia and the Fund’s first funding. “These funds signify the primary institutional capital ever invested in Sintavia, and having monetary buyers concerned in an organization for the primary time is a giant deal. There may be typically apprehension surrounding new institutional capital, however that was not the case right here. Not solely is the North Atlantic group educated about additive know-how, they’re additionally totally aligned with us within the pursuit of Sintavia’s long-term strategic success as an aerospace & protection element OEM.”
Brian Neff, CEO of Sintavia. Picture courtesy of Sintavia.
Gorey and Morrissette are optimistic in regards to the total final result of this Fund.
“If we’re profitable with this Fund, clearly good monetary returns are essential, but it surely’s greater than that, and that’s what makes this Fund so distinctive,” mentioned Morrissette. “Our metrics may even be targeted on whether or not we have now made an affect on the commercial provide chains and prolonged AM throughout states. Is that this a mannequin that should proceed? Have we improved manufacturing capability within the US?”
Gorey agrees: “This Fund is vital for the well being of the protection provide chain. It’s crucial as a result of the protection provide chain is way too depending on overseas sources. If we will diversify the home provide base and cut back dangers tied to foreign-supplied elements and bottlenecks, that’s an enormous win for the nation.”
ASTRO America head Neal Orringer meets with officers on the Pentagon in August 2023 to debate what would grow to be the AM-Ahead Fund. Picture courtesy of ASTRO America
“We’re a small fund,” concluded Morrissette, “but when we will positively affect the protection industrial base, we open the door for lots extra funding.”
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