Apollo Aviation Group (Apollo Aviation), a multi-strategy aviation investment manager specialising in mid-life and mature aircraft, has contracted to purchase five aircraft for US$53 million in the fourth quarter of 2013 on behalf of its second aviation fund, SASOF II. The aircraft include three in-production models (A320ceo family aircraft).
Since SASOF II’s inception, Apollo Aviation has contracted to acquire 44 aircraft, eight engines and one airframe with a total gross purchase price of US$640 million.
The SASOF II fund closed in the first quarter of 2013 with commitments of US$595 million. By year end, it had called US$353 million, representing 59% of available funding. During the year, Apollo Aviation successfully acquired debt financing for SASOF II amounting to more than US$100 million with two international financial institutions. With these funding sources, SASOF II purchased a total of 31 aircraft, one airframe and eight spare engines in the calendar year (2013), which required US$489 million. Eighty-four percent of aircraft agreed for purchase in 2013 have a lease attached and 85% are in-production models.
During 2013, Apollo Aviation’s assets under management grew to US$1.3 billion with a compound annual growth rate (CAGR) of 66% [CAGR is calculated from 2004 – 30 June 2013]. The Group increased its team to 51 from 38 at the start of the year, which included a number of senior appointments. Among the new team members is Scott J Paige, who was appointed Portfolio Manager of Apollo Aviation Group’s newly established subsidiary, AAG Capital Markets, to manage aviation-related securities.
William Hoffman, Apollo Aviation’s Chairman, explained: “2013 has been an important year for us. Through our private equity funds, we have cemented our position as a significant lessor of mid-life in-production aircraft. This next year holds exciting prospects as we continue to make acquisitions on behalf of SASOF II and as the Group branches out into more liquid aviation investments.”