XCOR PRESS RELEASE
20 August 2008
XCOR Aerospace today announced that Desert Sky Holdings has become the first institutional investor in the aerospace company.Â 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 Skyâ€™s commitment to XCOR is an important vote of confidence in the company,â€ says XCORâ€™s new Chief Operating Officer, Andrew Nelson, a former Morgan Stanley banker.
â€œInstitutional investors tend to be cautious and deliberate when selecting investments because they are investing other peopleâ€™s money and must be able to justify their decisions to their limited partners,” Nelson added. “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 XCORâ€™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.â€
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.
â€œThe 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,â€ said Desert Sky Holdings Managing Partner Robert Jacobson. â€œAfter 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.â€
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.
XCOR Aerospace is a California corporation located in Mojave, California. The company is in the business of developing and producing safe, reliable and reusable rocket engines, rocket propulsion systems, and rocket powered vehicles.