Partners Group, a global private markets firm, has invested USD 250 million as the sole lead investor in a continuation vehicle established by Avenue Capital Group to acquire its global commercial aviation leasing portfolio. The transaction, one of the largest transportation deals by Partners Group's infrastructure secondaries strategy, underscores the increasing recognition of aircraft leasing as an infrastructure asset class.
The Portfolio comprises 69 mid-life aviation projects, including narrowbody aircraft, widebody aircraft, and regional jets, assembled over the past decade. The lessee base is diversified across 30 airlines spanning Asia, Western Europe, and North America, with the majority of cash flows contracted to provide stable, predictable income. The portfolio is structured to maximize asset values at contract end through re-leases, aircraft sales, or disassembly.
Jeremy Semble, Head of Infrastructure Partnership Investments Americas at Partners Group, said: 'Aircraft leasing is a growing space within the infrastructure asset class. The Portfolio is asset-heavy with contracted cash flows and high barriers to entry, reflecting significant capex requirements and maintenance needs. This makes it a great fit for our infrastructure secondaries strategy, where we look to provide investors with diversified exposure to sectors with resilient demand and strong growth potential.'
The commercial aviation leasing market benefits from several tailwinds, including a structural undersupply of new aircraft due to production delays, shifting industry dependence to mid-life aircraft and spare parts. Additionally, aircraft engines are increasingly used for alternative industrial uses, underpinning demand for legacy engines and supporting residual values.
Marc Lasry, Co-Founder and CEO of Avenue Capital Group, said: 'This new continuation vehicle provided our existing limited partners with a compelling liquidity option and has allowed us to once again partner with Partners Group via a continuation vehicle, providing them with exposure to our strong portfolio of aviation projects that we have assembled over the past decade.'
Partners Group's Infrastructure Partnership Investments business focuses on LP-led portfolios, GP-led investments, and complex situations globally. The firm has completed over 70 infrastructure secondaries transactions since 2006 and is currently raising its latest infrastructure secondaries program.
Partners Group was advised by Ropes & Gray on the transaction, while Avenue Capital Group was advised by Latham & Watkins and Perella Weinberg Partners. For more information, visit Partners Group or NewMediaWire for the original release.
