Family Office Fundamentals

SBIC Venture Capital: AE Industrial Partners

Episode Summary

In this episode of Family Office Fundamentals, we're joined by Brian Schettler, Partner and Head of AE Ventures, the early stage investing arm of AE Industrial Partners, a $7.2bn private equity firm (as of 6/30/25) focused on specialized markets including National Security, Aerospace, and Industrial Services. We discuss Brian's career path from electrical engineer at Northrop Grumman to founding Boeing HorizonX Ventures, and his transition to leading early-stage investing at AE. Brian explains how AE Ventures operates as one of 17 approved funds in the SBIC's Critical Technologies program, which combines capital leverage with government partnerships. The conversation explores AE Ventures' investment approach in seed through Series B companies developing critical defense technologies, including trusted AI and autonomy, space technology, advanced computing, and directed energy. Brian describes how the firm leverages aerospace and defense expertise from former military leadership like General Jim McConville and Secretary Ryan McCarthy, operating partners at AE, to support portfolio companies. Brian shares his observations on the shift from traditional "exquisite" defense programs toward more agile, scalable solutions, and discusses how the intersection of increased defense budgets and the governments warming up to startup innovation is creating new dynamics in the national security technology sector. Tune in for insights into this new and specialized corner of the venture capital world and the unique considerations involved in investing at the intersection of technology and national security.