Investec Aviation Finance has launched its fourth aircraft leasing fund to acquire new, on-lease narrow and widebody aircraft.
The new fund is targeting up to 50 aircraft acquisitions and has an expected lifecycle of seven years. The fund is open to institutions looking to gain exposure to aircraft leasing alongside an experienced manager and partner. The launch of this new fund, Investec Aircraft Syndicate, responds to on-going demand for alternatives and real assets as a complement to traditional asset classes with which it is uncorrelated.
Investec’s commitment to the aviation sector has reached $6bn of aircraft assets under management, which has been invested across the capital stack over the last ten years. Investec is capping its latest fund at $500 million and has already secured over $150 million of cornerstone investment from European financial institutions. Investec Aircraft Syndicate’s second close is expected in the first quarter of 2019.
Investec has a long track-record in aviation finance, launching its first equity fund, Investec Global Aircraft Fund (IGAF) in 2008. Investec has over $1.2bn of investments in various funds from financial institutions, including pensions and insurance companies. Across debt and equity Investec’s funds are currently exposed to over 200 aircraft.
“Since we launched our first equity fund ten years ago, Investec’s platforms have delivered consistent returns to investors,” says Alok Wadhawan, Head of Aviation Finance at Investec. “We’ve managed aircraft through the cycle and have successfully monetised three funds by selling 75+ aircraft over the past three years, building strong credentials in this space. The commitment by insurance and pensions companies in the UK and Germany who have chosen us as a partner to advise on their investments in aircraft leasing through this fund are testimony of our team’s capabilities. As we are approaching the second round of fundraising we are looking to deploy the initial capital.”