Air Finance Journal Copying and distributing are prohibited without permission of the publisher

Feature: The private equity exit

13 May 2011

What expectations are driving the new breed of leasing companies, and can they deliver?

Read more: private equity lessors Jackson Square Aviation Indigo Partners Terra Firma Awas HKAC

This time last year the talk was of new money discovering aircraft leasing. Since then, more than $4 billion came from private equity alone. But there is no such thing as a free lunch.

Private equity investment in aviation is changing the game. Now lessors, with their backing, can focus on new aircraft deliveries, long-dated leases, and stable cash flows - building toward an initial public offering (IPO) or a trade sale at the top of the cycle.

Two startups have been particularly successful raising capital in the private equity arena. Avolon and Air Lease Corporation (ALC) have raised $1 billion and $1.3 billion, respectively, from private equity shareholders since establishing their businesses last year.

The private equity/lessor dynamic is important because the proportion of the global fleet that leasing companies are financing is increasing as the number of yearly deliveries grow.

In 2004 there were about 500...


Latest Deals Database Updates

Thai / 04-14 / Various / 5xA320 (RFP) 16/04/2014
Latest Deal Status RFP
Overall Arrangers
Assets A320
AirAsia / 04-14 / Airc Sec Loan / 1xA320 14/04/2014
Latest Deal Status Financial close
Overall Arrangers Credit Agricole CIB
Assets A320
SriLankan / 04-14 / Murabaha / - 14/04/2014
Latest Deal Status Financial close
Amount $m150
Use of Proceeds General corporate purposes

Upcoming Events