U.S.-based asset manager Monroe Capital has decided to branch out into the aircraft leasing sector, joining forces with AIP Capital to create an aircraft leasing portfolio worth up to $1 billion.
Announcing their partnership on July 1, asset-based finance specialist Monroe detailed plans to invest in mid-life aircraft on long-term leases, which will be managed by AIP.
Monroe MD & co-head of alternative credit solutions Aaron Peck said the deal marks Monroe’s expansion into the aviation sector, and AIP was selected as an experienced partner.
“We believe aviation is a natural extension of our platform, and this venture positions us to deliver attractive, risk-adjusted returns for our investors,” he said.
Monroe has secured $500 million from Deutsche Bank to fund its initial aircraft acquisitions.
AIP managing partner Jared Ailstock said Monroe will provide “scalable and stable capital,” at a time when capital markets have become increasingly volatile.
In other aircraft leasing news, Ireland’s IAT Leasing has acquired a portfolio of nine Airbus and Boeing narrowbodies—placed with eight airlines in North America, Europe and Asia—from Zephyrus Aviation Capital.
Separately, turboprop specialist Abelo has detailed plans to acquire three ATR 72-600s on lease to Swedish wet lease operator Braathens. The aircraft are being sold by Bramora, an investment company that is owned by Per Braathen and his immediate family.
“This transaction demonstrates Abelo’s ability to execute strategic acquisitions under its new ownership by an affiliate of Cerberus Capital Management and follows the establishment of a $750 million warehouse facility to support continued growth,” Abelo said.
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