Key Takeaways
- • Monroe Capital and AIP Capital closed MCAV 2026-1, a $643m (£477.4m) aircraft asset-backed securitisation and the first transaction issued through their joint aircraft leasing venture.
- • The collateral comprises 18 commercial aircraft leased to 12 airline operators across 10 jurisdictions, predominantly narrow-body aircraft in Europe, Asia, the Middle East, Africa and Latin America, valued at approximately $739m.
- • The deal's capital structure included around $547m of Class A notes, $66.5m of Class B notes and $29.6m of Class C notes, supported by a group of institutional investors.
- • Deutsche Bank Securities, BNP Paribas Securities and Fifth Third Securities acted as co-structuring agents and joint lead bookrunners, with Citigroup Global Markets as joint lead bookrunner.
Summary
Monroe Capital and AIP Capital have announced the close of MCAV 2026-1, a $643m (£477.4m) aircraft asset-backed securitisation. The transaction is the first issued through the joint aircraft leasing venture the two firms launched in 2025, in which Monroe Capital provides the investment capital and AIP acts as servicer for the platform.
The securitised portfolio consists of 18 commercial aircraft leased to 12 airline operators across 10 jurisdictions. The fleet is predominantly narrow-body aircraft operating across Europe, Asia, the Middle East, Africa and Latin America, and is valued at approximately $739m. The transaction was supported by a group of institutional investors and included around $547m of Class A notes, $66.5m of Class B notes and Class C notes totalling $29.6m.
Deutsche Bank Securities, BNP Paribas Securities and Fifth Third Securities acted as co-structuring agents and joint lead bookrunners. Citigroup Global Markets served as joint lead bookrunner, with Natixis Securities Americas and BMO Capital Markets as bookrunners and KeyBanc Capital Markets as co-manager.
Aaron Peck, managing director and co-head of alternative credit solutions at Monroe, said the closing marks an important milestone for the firm's alternative credit platform and reflects the strength of its asset-backed finance capabilities. Aaron Levy, managing director of alternative credit solutions at Monroe, said the transaction reflects the quality of the portfolio assembled with AIP and the firm's disciplined approach to aviation investing, citing strong asset fundamentals, favourable supply-demand dynamics and continued growth in global air travel.
The deal sits within Monroe's alternative credit solutions group, which focuses on asset-backed finance and complex special-situation structured debt and equity financings, spanning specialty finance areas such as royalty, consumer, litigation, fund and commercial finance, and hard-asset strategies including real estate, digital infrastructure, aircraft and equipment finance.
The securitised portfolio consists of 18 commercial aircraft leased to 12 airline operators across 10 jurisdictions. The fleet is predominantly narrow-body aircraft operating across Europe, Asia, the Middle East, Africa and Latin America, and is valued at approximately $739m. The transaction was supported by a group of institutional investors and included around $547m of Class A notes, $66.5m of Class B notes and Class C notes totalling $29.6m.
Deutsche Bank Securities, BNP Paribas Securities and Fifth Third Securities acted as co-structuring agents and joint lead bookrunners. Citigroup Global Markets served as joint lead bookrunner, with Natixis Securities Americas and BMO Capital Markets as bookrunners and KeyBanc Capital Markets as co-manager.
Aaron Peck, managing director and co-head of alternative credit solutions at Monroe, said the closing marks an important milestone for the firm's alternative credit platform and reflects the strength of its asset-backed finance capabilities. Aaron Levy, managing director of alternative credit solutions at Monroe, said the transaction reflects the quality of the portfolio assembled with AIP and the firm's disciplined approach to aviation investing, citing strong asset fundamentals, favourable supply-demand dynamics and continued growth in global air travel.
The deal sits within Monroe's alternative credit solutions group, which focuses on asset-backed finance and complex special-situation structured debt and equity financings, spanning specialty finance areas such as royalty, consumer, litigation, fund and commercial finance, and hard-asset strategies including real estate, digital infrastructure, aircraft and equipment finance.
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