Key Takeaways
- • Monroe Capital and AIP Capital have formed a venture to acquire a diversified aircraft leasing portfolio initially targeting approximately $1 billion in investments.
- • The portfolio will focus on mid-life aircraft on long-term lease to airlines globally, with Monroe providing the investment capital.
- • AIP Capital will act as servicer of the assets, and Monroe has identified it for that role.
- • Monroe has secured commitments from Deutsche Bank, New York Branch, and Fifth Third Bank for an initial $500 million senior secured warehouse facility to support aviation asset acquisitions.
Summary
AIP Capital, an alternative investment manager focused on asset-based finance, has announced a venture with Monroe Capital, a private credit and asset-based finance manager, to buy a diversified aircraft leasing portfolio. The venture initially targets approximately $1 billion in investments in mid-life aircraft on long-term lease to airlines globally. Under the arrangement, Monroe will provide the investment capital, while AIP Capital will act as servicer of the assets.
To support the acquisition of aviation assets, Monroe has secured commitments from Deutsche Bank, New York Branch, and Fifth Third Bank for an initial $500 million senior secured warehouse facility, according to the announcement.
Advisory roles were also disclosed. Gibson Dunn served as transaction counsel and PwC as tax advisor to AIP Capital, while Milbank served as transaction counsel and KPMG as tax advisor to Monroe.
Jared Ailstock, Managing Partner at AIP, said the partnership provides scalable and stable capital and enhances value for global airline customers and lessor trading partners amid increased capital markets volatility. He said the firm looks forward to scaling the venture over the coming months. Aaron Peck, Managing Director and Co-Head of Alternative Credit Solutions at Monroe, said the move extends the firm's asset-based finance business into aviation, reflecting a strategy of aligning with experienced operators in sectors with strong asset fundamentals and long-term demand visibility, with the aim of delivering attractive, risk-adjusted returns for investors.
To support the acquisition of aviation assets, Monroe has secured commitments from Deutsche Bank, New York Branch, and Fifth Third Bank for an initial $500 million senior secured warehouse facility, according to the announcement.
Advisory roles were also disclosed. Gibson Dunn served as transaction counsel and PwC as tax advisor to AIP Capital, while Milbank served as transaction counsel and KPMG as tax advisor to Monroe.
Jared Ailstock, Managing Partner at AIP, said the partnership provides scalable and stable capital and enhances value for global airline customers and lessor trading partners amid increased capital markets volatility. He said the firm looks forward to scaling the venture over the coming months. Aaron Peck, Managing Director and Co-Head of Alternative Credit Solutions at Monroe, said the move extends the firm's asset-based finance business into aviation, reflecting a strategy of aligning with experienced operators in sectors with strong asset fundamentals and long-term demand visibility, with the aim of delivering attractive, risk-adjusted returns for investors.
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