Stifel Financial Corp. has received final federal approval for its North Atlantic AM-Forward Fund, which will provide small and mid-sized American manufacturers with capital to increase their additive and advanced manufacturing capabilities.
The Fund has been set up to support the White House’s AM Forward initiative, which was created in 2022 with the aim of supporting smaller manufacturers in adopting additive manufacturing technology. AM Forward has secured GE Aerospace, Honeywell, Lockheed Martin, Raytheon, Siemens Energy, Boeing and Northrup Grumman as founding partners, with each company making pledges related to the procurement of additively manufactured parts from smaller US-based suppliers, as well as the training of their workforces and the development of standards.
ASTRO America, a not-for-profit, non-partisan research institute and think tank leading the AM Forward program, has selected Stifel as a financial partner. to support this effort Stifel has therefore established a fund that can use a range of financial structures targeted to the specific needs of small businesses. The initial investment for the fund includes 'significant capital commitments' from the likes of Lockheed Martin, GE Aerospace and ASTM International.
According to Stifel, capital from the fund will connect manufacturers with lead system integrators to meet the growing industry demand for low-volume high-mix components. Additionally, the fund’s investments will enable manufacturers to acquire new fixed assets, expand their working capital and traverse rigorous aerospace and defence certification and qualification protocols.
Read more:
- Honeywell & Boeing provide an update on the AM Forward initiative
- The 3D printing industry responds to Biden Administration's AM Forward initiative
This week, the financial services company earned a Small Business Investment Company (SBIC) licence from the Small Business Administration, in partnership with with the Department of Defense under the SBIC Critical Technology (SBICCT) initiative. The fund is therefore eligible for SBA leverage, which can supplement the amount of private capital raised and expand investment reach.
“We are pleased to receive this license from the SBA,” said Victor Nesi, Stifel Co-President of Stifel. “In collaboration with our strategic partners, we are proud to give America’s emerging small businesses the capital and strategic support they need to advance innovation that supports our supply chain, creates domestic jobs, amplifies manufacturing capacity, and importantly, increases national security.”
“Small and medium sized manufacturers are at the core of ASTM International, and we are excited that our global standards and solutions will serve as an innovative tool in connecting the diverse supply chains of our aerospace and defence industries,” added Andy Kireta, ASTM International President.
North Atlantic Capital Management, a Stifel Company, will manage the fund based on its extensive middle market investment experience and over 30 years’ history of managing SBIC Funds. The Fund’s Technical Advisory Board, a partnership between the Fund and its strategic investors, will be led by Neal Orringer, President of ASTRO America and former Director of Manufacturing at the Department of Defense.
