Warburg Pincus, a global private equity firm focused on growth investing, has formed Aquila Air Capital, which is a new specialty finance platform focused on commercial aerospace, in partnership with Al Wood and investment firm Kepler Hill Capital.
Aquila Air Capital states that it will have a broad mandate to purchase, finance, and lease, aircraft, engines and other aviation equipment. The company has a “vision” to become “a trusted partner to all players in the value chain, from buyers and sellers of assets to operators in need of creative and timely solutions for their critical business needs”.
Al Wood – former CFO of Boeing Commercial Services and CEO of AeroTurbine – has joined Warburg Pincus as an executive-in-residence to identify and evaluate investment opportunities related to the broader aerospace and defense industry and to help build Aquila Air Capital.
"There is a significant market opportunity to build a leading specialty finance franchise in commercial aerospace. By pairing our expertise in special situations and specialty finance with our deep history in aerospace, Aquila Air Capital is well-positioned to build a scaled and diversified platform," said Eric Friedman, Managing Director, Warburg Pincus.
"We have a long-standing history with Al and Kepler Hill Capital, who both have strong records of creating value in the sector. As a long-term investor in aerospace businesses, we are excited about our partnership to create a new market-leader in aerospace specialty financing," added Dan Zamlong, Managing Director, Warburg Pincus.
Keith Whittaker, Managing Partner of Kepler Hill Capital and Senior Advisor to Warburg Pincus, stressed that Aquila Air Capital is looking to “capitalise on the current dislocation in the aerospace sector by leveraging the expertise and global resources of Warburg Pincus”. Al Wood states that the company aims to take advantage of the aviation industry’s need for capital to become “an important partner for passenger and cargo operators and the MRO community supporting their aircraft”.
Warburg Pincus has invested over $3 billion in several aerospace including: Accelya, Inmarsat, and Wencor Group. Kepler Hill Capital is a private equity investment firm focused on special situations including asset platforms, turnarounds, and structured equity investments. Kepler Hill and its principals have invested in and built three prior aviation platforms.