MOJAVE, Calif., Aug. 20 /PRNewswire/ -- XCOR Aerospace today announced 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.
"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. This investment by Desert Sky
Holdings indicates that institutional investors are starting to appreciate
XCOR's value proposition and its prospects in an industry that has not
traditionally attracted significant interest. Of course, neither did Netscape
or YouTube when they first started out."
Founded in 1999 and located in Mojave, California, 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.
Recently, XCOR performed the first public flights of its second generation
rocket-powered aircraft for a client before crowds of over 100,000 in Oshkosh,
WI. 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."
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.
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