Private Equity Invests in Low-Earth Satellites Eyeing Big Market

Investors are betting that low-to-Earth small satellites, or “smallsats,” in 10 years will be to government and business what IT is now—essential.

Denver firm York Space Systems is the latest satellite maker to illustrate that case. Private-equity firm AE Industrial Partners’ deal to buy a majority stake in York sprung in part from its “marquee wins” on the Defense Department’s new “Low-Earth Orbit” (LEO) satellite project.

The deal illustrates how the combination of US government and commercial demand is causing companies to focus on bigger groups of small satellites. They’re used to produce digital imagery, GPS and weather monitoring tech, ...