ABL Aviation has established a joint venture with Ellington Management Group (Ellington), an alternative investment manager, that will target $800 million in aircraft assets. ABL Aviation states that the new venture, which adds to strategic partnerships held by ABL Aviation in Japan, will seek to generate attractive, uncorrelated returns to investors by executing on a strong existing deal pipeline.
Adopting an opportunistic approach, the new venture allows for flexibility across asset types, asset age, duration, structures and jurisdictions, said ABL Aviation, which will act as servicer and manager for all aircraft. Ellington will provide financial and strategic support.
ABL Aviation hopes that the formation of this new partnership, along with its global origination network and in-house technical expertise, will be positioned to grow the $2.5bn it has invested since inception and further develop its offering to global institutional investors. Ellington’s global network of investors and US market and investment expertise is also expected to complement ABL Aviation’s international presence as the joint venture begins sourcing aircraft deals.
“We are excited to partner with Ellington on this new venture which will address growing investor awareness of the significant, high-yield opportunities currently accessible in the global aviation market,” says Ali Ben Lmadani, CEO of ABL Aviation. “As the market begins to bounce back from the pandemic downturn, we expect rising passenger numbers and a lifting of restrictions to prompt a buoyant market with clear opportunities for investment growth.
Robert Kinderman, Vice Chairman and Co-Head of Credit Strategies at Ellington, added: “ABL Aviation has established itself among the aircraft industry as a preeminent and innovative global asset manager well-positioned to source and execute dynamic, complex transactions. We are pleased to partner with Ali and the entire ABL Aviation team on the heels of resurgence across the aviation industry and look forward to working closely with them to identify unique investment opportunities that deliver solid results to investors.”