Elix Aviation, the regional aircraft leasing company owned by funds managed by Oaktree Capital Management, is to merge with ADARE Aviation Capital. The merger was initiated by Oaktree to enable further investment in the regional turboprop sector and to introduce an experienced new leadership team.
The merged companies will operate as Abelo, integrating Elix Aviation’s platform and turboprop portfolio with the management expertise of ADARE Aviation Capital management team comprising Stephen Gorman, Chief Executive Officer, Mathieu Duquesnoy, Chief Marketing Officer, and Michael Hayden, Chief Operating Officer.
“Elix Aviation has weathered the pandemic and is well placed to enter a new phase of growth. With the addition of ADARE Aviation Capital, we have formed a leadership team that has significant expertise and experience in regional aviation,” says Martin Graham, Managing Director at Oaktree. “We believe the synergy of the teams will enable Abelo to become a market leader, creating growth and value for its stakeholders. We look forward to supporting this exciting transition.”
ADARE was established in 2020 during the global pandemic, where the team worked strategically with investors to seek out and generate “above-market returns”.
“This merger comes at a unique time in the aviation cycle, so we are thrilled to be able to align with Oaktree and join forces with the team at Elix Aviation in the creation of Abelo,” said Abelo’s new CEO, Stephen Gorman. “We remain committed to regional aviation and believe Abelo will be well placed to grow in the turboprop sector. There are a lot of changes expected in all areas of the business – especially in ESG – and we intend to be in the driving seat of progress. This is also an exciting time for the Elix Aviation employees joining us, as with the support of Oaktree, we plan to accelerate
growth and become the go-to lessor of turboprop aircraft.”
Meanwhile, rival regional leasing company, Falko Regional Aircraft (Falko) – the subsidiary of Chorus Aviation – has expanded its portfolio of assets under management with the addition of 35 turboprop aircraft. The aircraft have been added to the portfolio in a servicing capacity on behalf of a syndicate of banks.
“I’m pleased to see the continued expansion of our asset management business and to demonstrate the ability of Falko to continue to diversify its customer base,” said Joe Randell, President and Chief Executive Officer, Chorus. “This transaction further validates our belief in the attractiveness of the regional aircraft market and in Falko, as a market-leading aircraft asset management company.”