Investec Aviation Finance has announced the setting-up of an "aviation debt platform" with an unnamed Japanese institutional investor.
The partnership will see Investec, which described its Japanese partner as a "major" investor, originate lending opportunities and co-invest in every deal on the platform, which is to "initially target [a] $ 500 million portfolio of well-diversified loan assets" and has an agreed "seed portfolio of US$ 70 million of senior loans across six aircraft and airlines in three continents."
"Beyond origination, Investec will provide advice on the ongoing management of the portfolio, including recommendations related to potential loan amendment, restructuring, aircraft repossession and exit opportunities," said the company, which was advised on the tie-up by law firm Watson Farley & Williams.
“We are delighted to support our new partners as they expand their footprint in aviation lending and look forward to sharing our experience in structuring aircraft backed transactions that achieve premium returns while focusing on capital preservation,” said Derek Wong, head of Investec Aviation debt funds.