Alternative investment manager AIP Capital has entered a new venture with Monroe Capital, to acquire a diversified aircraft leasing portfolio of up to $1bn of investments.
This venture will seek to acquire a diversified aircraft leasing portfolio, initially targeting approximately $1bn of investments in mid-life aircraft on long-term lease to airlines globally.
"This venture provides scalable and stable capital; critically, it enhances value to our global airline customers and lessor trading partners even as capital markets have increased volatility," said Jared Ailstock, managing partner at AIP.
Monroe will provide the investment capital and has identified AIP to act as servicer of the assets. Monroe has also secured commitments from Deutsche Bank and Fifth Third Bank for an initial $500 million senior secured warehouse facility to support the acquisition of aviation assets.
"This venture provides scalable and stable capital; critically, it enhances value to our global airline customers and lessor trading partners even as capital markets have increased volatility," said Jared Ailstock, managing partner at AIP.
Gibson Dunn served as transaction counsel and PwC acted as tax advisor to AIP Capital. Milbank served as transaction counsel and KPMG acted as tax advisor to Monroe.