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Speaking to Engine Yearbook in late 2025, the COO of ELFC, Darren Wormald, highlighted a need for more investment in engine leasing, noting that “the need for independent lessors with strong balance sheets has arguably never been greater than during this period of global fleet transition into new technology engines.”
Entering 2026, there is some evidence of a response following two engine financing deals, including a tie-up between Willis Lease Finance and Blackstone Credit & Insurance (BXCI).
The partnership will deploy $1 billion over the next years into “current and next generation aircraft engines and select aircraft,” Willis said.
The engine lessor and maintenance provider added that it had already identified a seed portfolio and near-term pipeline of engine assets to launch the partnership, providing immediate scale and diversification across engine types and airline customers.
Bridgepoint Group is another investor that has pursued private equity and private credit deals in the aviation market, including a joint venture platform with AIP Capital to invest in engines.
“Our view is that aviation assets in general have several features that are unique relative to traditional private capital strategies that make them attractive,” noted Rohit Dhote, partner and co-head of credit opportunities at Bridgepoint, talking to Aviation Week last year.
Among the benefits of engine assets, he listed downside protection of asset ownership, contracted period cash flow and the upside potential for residual value outperformance.
Blackstone outlined similar advantages to its new deal. “This opportunity is consistent with BXCI’s objectives of building programmatic, differentiated origination in large addressable markets with a focus on hard assets and strong downside protection,” commented Aneek Mamik, senior managing director, Blackstone.
Another financing partnership in the engine leasing space this year concerns aviation and rail-focused Residco, which agreed to a $100 million facility with Ohio-based Huntington National Bank to enhance and expand its portfolio of mid- to late-life commercial aircraft engines.
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