FTAI Aviation has partnered with One Investment Management (OneIM) on its inaugural vehicle of FTAI's strategic capital initiative and expects to scale its acquisition of on-lease narrowbody aircraft over the coming quarters.
The acquisitions are being funded through a combination of equity commitments and the previously announced commitment to provide $2.5bn of asset-level debt financing from ATLAS SP Partners, the structured business majority owned by Apollo funds, and Deutsche Bank.
The first vehicle under the initiative expects to deploy more than $4 billion of total capital into on-lease 737NG and A320ceo aircraft.
The engines owned by the partnership will be powered exclusively via engine and module exchanges with FTAI’s maintenance, repair and exchange business.
“We believe the partnership will allow us to remain focused on an asset-light balance sheet while also capitalizing on the synergies of a large portfolio of on-lease narrowbody aircraft and our proprietary engine maintenance capabilities,” said FTAI CEO and chairman. “We believe the strategic capital initiative will allow us to further expand our customer reach, drive innovation and deliver an enhanced engine maintenance solution to the global aviation ecosystem while creating value for our shareholders.”
OneIM cofounder and CEO Rajeev Misra said: “This innovative and bespoke collaboration integrates FTAI’s best-in-class maintenance capabilities and aircraft acquisition capabilities which creates a differentiated competitive advantage for our partnership.”
Kirkland & Ellis, McGuireWoods, and Gibson, Dunn & Crutcher are serving as legal counsel and Lincoln International is serving as financial advisor related to FTAI's strategic capital initiative. Milbank is serving as counsel to OneIM.