Castlelake closed its fifth aviation fund on March 20, 2025. The Castlelake Aviation V Stable Yield V fund, along with related aviation strategy investment vehicles, accounts, and co-investments, raised over $2bn in capital commitments.
The firm first began seeking commitments to the fund in 2023. The company said the commitments represented both new and existing relationships with a diverse group of global institutions including pensions, sovereign wealth funds and endowments.
“In our view, the persistent and significant shortage of flexible alternative capital in the aviation sector combined with a chronic undersupply of aircraft is creating a durable opportunity set for Castlelake to deliver attractive and creative exposure to the fund's investors,” said Castlelake CEO and chief investment officer Evan Carruthers.
The Fund and related aviation investment vehicles seek to apply Castlelake's experience investing in, financing and managing aviation assets to deliver attractive risk-adjusted returns by creating exposure to high quality, cash-flowing aviation assets and secured aviation debt.
Castlelake Aviation V represents Castlelake's fifth and largest dedicated aviation fund. Since its inception in 2005, Castlelake has invested over $21bn in aviation opportunities.
Castlelake's recent aviation activity includes the issuance of its 9th aircraft asset-backed securitisation (ABS), a $740 million term loan for Abra, $400 million of financing for Virgin Atlantic Airways, and a $1bn term loan facility to support Castlelake's continued investment in and acquisition of in-demand aviation assets on behalf of its investors.