Key Takeaways
- • Falko Regional Aircraft Limited closed its second aircraft leasing fund at $650 million, exceeding its original $600 million fundraising target, with commitments from institutional investors across North and South America, Europe, the Middle East, Asia, and Africa.
- • The fund is structured as a Jersey Expert Fund and will deploy capital into equity investments in new and used regional aircraft leased globally, leveraging Falko's market-leading position in aviation asset management.
- • Carey Olsen, alongside Kirkland & Ellis, provided legal advisory services on fund incorporation, Jersey regulatory compliance, and structural establishment, with the Carey Olsen team led by partner Daniel O'Connor.
- • The investor base includes public and private pension plans, insurance companies, wealth managers, endowments, family offices, funds of funds, and a sovereign wealth fund, reflecting diversified institutional demand for aviation-backed investment vehicles.
- • Jersey's Expert Fund designation and National Private Placement Regime offer alternative fund managers a cost-effective, flexible regulatory framework as an alternative to AIFMD passport requirements, positioning the jurisdiction as competitive for EU-focused aviation funds post-Brexit.
Summary
Falko Regional Aircraft Limited has successfully closed its second aircraft leasing fund at $650 million, surpassing its original $600 million target. The fund, domiciled in Jersey and structured as an Expert Fund, will focus on equity investments in new and used regional aircraft deployed across global leasing markets. The oversubscribed close reflects institutional investor confidence in Falko's operating leasing and asset management platform.
The fund attracted commitments from a diversified institutional investor base spanning multiple geographies and asset classes. Limited partners include public and private pension plans, insurance companies, wealth managers, endowments, family offices, fund-of-funds structures, and a sovereign wealth fund, with allocations sourced from North and South America, Europe, the Middle East, Asia, and Africa. This geographic and institutional diversity underscores demand for aviation-backed alternative investment vehicles among sophisticated capital allocators.
Carey Olsen provided primary legal advisory services for the fund's establishment and regulatory compliance, working in tandem with international counsel Kirkland & Ellis LLP. Carey Olsen's team, led by partner Daniel O'Connor and supported by senior associates Claire Brazenall and Nienke Malan, as well as associate Aidan McConville, navigated Jersey-specific corporate and regulatory requirements. This represents Carey Olsen's second engagement with Falko, having advised on the company's inaugural fund launch in 2015.
According to Daniel O'Connor, the successful close demonstrates Falko's market-leading position in aviation leasing and validates Jersey's competitive advantages for alternative fund managers. He highlighted that the Jersey Expert Fund structure with National Private Placement Regimes offers regulatory flexibility and cost efficiency relative to AIFMD passport frameworks, positioning Jersey as a jurisdiction of choice for EU-focused managers seeking lighter regulatory burdens in a post-Brexit environment. Jeremy Barnes, CEO of Falko, attributed the smooth closing process to Carey Olsen's legal expertise and industry-specific experience in aviation finance and fund structuring.
The fund attracted commitments from a diversified institutional investor base spanning multiple geographies and asset classes. Limited partners include public and private pension plans, insurance companies, wealth managers, endowments, family offices, fund-of-funds structures, and a sovereign wealth fund, with allocations sourced from North and South America, Europe, the Middle East, Asia, and Africa. This geographic and institutional diversity underscores demand for aviation-backed alternative investment vehicles among sophisticated capital allocators.
Carey Olsen provided primary legal advisory services for the fund's establishment and regulatory compliance, working in tandem with international counsel Kirkland & Ellis LLP. Carey Olsen's team, led by partner Daniel O'Connor and supported by senior associates Claire Brazenall and Nienke Malan, as well as associate Aidan McConville, navigated Jersey-specific corporate and regulatory requirements. This represents Carey Olsen's second engagement with Falko, having advised on the company's inaugural fund launch in 2015.
According to Daniel O'Connor, the successful close demonstrates Falko's market-leading position in aviation leasing and validates Jersey's competitive advantages for alternative fund managers. He highlighted that the Jersey Expert Fund structure with National Private Placement Regimes offers regulatory flexibility and cost efficiency relative to AIFMD passport frameworks, positioning Jersey as a jurisdiction of choice for EU-focused managers seeking lighter regulatory burdens in a post-Brexit environment. Jeremy Barnes, CEO of Falko, attributed the smooth closing process to Carey Olsen's legal expertise and industry-specific experience in aviation finance and fund structuring.
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