Investment manager Barings has entered into a purchase agreement to acquire a portfolio of narrow-body aircraft through its Capital Solutions platform.
The transaction is in partnership with aircraft lessor Genesis, which is owned by Barings-managed funds, and will see the lessor originate, underwrite, and manage the portfolio.
This aircraft portfolio includes 12 end-of-life narrowbodies and their associated leases, which are valued in excess of $200 million.
“We see significant value in the mid and end-of-life aircraft space in today’s market as global travel has recovered above pre-pandemic levels, while supply chain disruption has contributed to a supply-demand imbalance,” said Michael Searles, head of North America for Barings Capital Solutions.
The transaction is structured to provide investors with contractual cash returns and additional upside through asset appreciation.
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