Volofin Capital Management's record $500 million in transactions during the first half of 2026 underscores the growing role of alternative lenders in aviation finance as stricter bank capital requirements create opportunities for specialized firms.
Stricter capital requirements for banks have helped aviation-focused lenders like Volofin and PK Airfinance do more business, as has the flexibility of their financing terms and asset-focused approach.
Volofin recorded more than $500 million of commitments and transaction closings in the first half, spread across 15 loan facilities. These included limited-recourse portfolio financings, the upsizing of existing portfolio facilities, an auxiliary power unit and turboprop engine facility, and several standalone engine facilities.
“We continue our strong momentum, with a record level of transaction activity and a robust pipeline, which has brought our total commitments since inception to over $3.35 billion. We look to continue supporting our expanding customer base with bespoke and thoughtful solutions as a reliable financing partner,” Volofin co-CEO and cofounder Robert Jack said Oct. 5.
For the full year, the lender expects commitments to reach $1.25 billion, which would be a record after just under $1 billion in 2025.
Another aviation lending platform is Merit Airfinance, which was launched by private investment firm Castlelake a few months after the sale of its leasing business Castlelake Aviation to Avolon.
In March, Merit said it had closed or committed to approximately $1.3 billion of financing across 11 transactions since the company's launch in August 2025. Of the 11 transactions, six were with leasing companies and five with airlines.
The growth of Merit and Volofin is partly due to a retreat by European banks, for which Basel IV regulations have made loans secured by aircraft less attractive. Alternative lenders and private credit have stepped into the space, while aircraft lessors are increasingly offering predelivery payment financing linked to sale and leaseback deals.
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