Warburg Pincus, the US private equity group, has made its first foray into the aerospace industry with last week's $1.1bn (€935m) leveraged buy-out (LBO) of Ohio-based Transdigm.

Kewsong Lee, managing director at Warburg Pincus in New York, says: "We have been studying the aerospace sector for a couple of years. There are lots of elements of the business that we like, such as the ability to generate good cash flow with low capital expenditure."