Arcano Partners closed its first aviation transaction with the acquisition of one 777-300ER on lease to Air Canada on October 1, 2024. The aircraft is already in the airline's fleet. The transaction was closed through the funds Arcano Aviation Fund, FCR, and Arcano Aviation SCR.
Arcano Asset & Capital Finance is the advisor to Arcano on its aviation strategy.
"The acquisition of this Boeing 777-300ER with a top-tier client like Air Canada highlights our ability to find interesting opportunities in this sector," said Arcano Asset & Capital Finance managing partner Jon Garaiyurrebaso in statement.
"The solid recovery of the sector, the imbalance between supply and demand and the fall in interest rates offer an increasingly favourable environment for investment," said Arcano managing director Miguel Cacho. "This asset class has been in the portfolios of American, European and Asian investors for a long time now, with a very resilient performance in the face of adverse effects."
Speaking to Airline Economics, Cacho said: "Our target is to acquire two more assets until the end of the year and continue investing during 2025 to try and build a diversified pool of assets."
Arcano is following a global approach to its strategy. Cacho added that its next assets "will very likely" be narrowbodies.
Another person familiar with the matter said the company is working on the close of another deal that could potentially be announced in the next couple of weeks.
The Spain-based independent asset management and investment banking firm launched the Arcano Aviation Fund, FCR in October last year. The fund had a fundraising target of approximately €100 million and is aimed primarily at institutional investors and private banking clients. In addition, the possibility of incorporating other complementary vehicles was also envisaged, so that the total investment could reach up to €150 million.
The company said the transaction signalled a "very significant milestone" for its aviation strategy with it "proving the team's capacity" to execute transactions in the sector.
The financing was provided by Investec Bank and Arena Aviation Capital will be the lease manager on behalf of Arcano.