A consortium led by Sumitomo Corporation, alongside SMBC Aviation Capital, Apollo Global Management and Brookfield Asset Management, has completed its acquisition of Air Lease Corporation, creating a new platform called Sumisho Air Lease Corporation with global law firm Milbank advising on the deal.
The deal, first announced in September 2025, valued Air Lease at around $7.4bn in equity, or around $28.2bn including debt. The newly formed Sumisho Air Lease (SALC) will operate as a large-scale global lessor with over $29bn of assets and a fleet of 490 owned aircraft.
“The closing of this transaction reflects Brookfield’s ability to deploy large-scale, flexible capital to support strategic partners in complex markets, said Ryan Schwartz, Managing Director at Brookfield. “Leveraging our credit expertise alongside Castlelake’s deep aviation experience, we delivered a tailored solution for Sumitomo Corporation and SMBC Aviation Capital that advances their strategic objectives and positions the business for long-term success.”
The transaction also reshapes the broader platform, with Air Lease’s orderbook transferring to SMBC Aviation Capital, taking its total commitments with Airbus and Boeing to around 420 aircraft. SMBC Aviation Capital will act as servicer for the majority of the new entity’s fleet, bringing its combined owned, managed and committed portfolio to more than 1,700 aircraft across over 170 airline customers.
The partners said the deal strengthens the financial position of the business and creates a well-capitalised leasing platform capable of meeting growing airline demand in a supply-constrained market.
“This transaction creates one of the most competitive, well‑capitalised, and customer‑focused leasing platforms in the global aircraft leasing market,” said Peter Barrett, Chief Executive Officer of SMBC Aviation Capital.
Alongside the transaction, KBRA affirmed investment-grade ratings for the new entity, maintaining an issuer and senior unsecured debt rating of A- with a stable outlook. Preferred shares were rated BBB, while short-term debt was assigned a K1 rating.
KBRA said the A- rating reflects both the company’s standalone credit profile and its strategic importance to its owners, particularly SMBC Aviation Capital and Sumitomo Corporation, highlighting a high likelihood of parental support.
The agency pointed to several factors underpinning the rating, including strong backing from financially robust sponsors, deep aviation expertise and operational integration with SMBC Aviation Capital, which will manage the fleet. It also cited the company’s modern, in-demand aircraft portfolio, diversified customer base and largely unsecured funding structure supported by significant unencumbered assets.
Liquidity was described as solid, supported by a $3.5bn unsecured revolving credit facility and strong operating cash flows, with multiple funding channels including bonds, loans and equity. Pro-forma leverage is expected to be around 3.5x net debt-to-tangible equity at closing, falling towards a 3.0x target as asset sales reduce debt.
However, KBRA noted risks including the cyclical nature of aviation, exposure to airline credit quality and uncertainty over long-term growth without a dedicated orderbook. The stable outlook reflects expectations that strong demand for aircraft and limited supply will continue to support lease rates and asset values in the coming years.
Executives said the creation of Sumisho Air Lease marks a new phase for the business, combining Air Lease’s existing fleet with long-term capital and industry expertise from its new owners to build a scaled, globally competitive leasing platform.