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 approximately USD 360 million multi-asset vehicle includes 69 mid-life aviation projects assembled over the past decade, spanning narrowbody aircraft, widebody aircraft, and regional jets. Avenue Capital Group's aviation team will continue managing the assets.
The portfolio is highly diversified across 30 airlines in Asia, Western Europe, and North America, with the majority of cash flows contracted, providing stable and predictable income. The structure is designed 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."
The commercial aviation leasing market benefits from 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, supporting residual values and tightening supply dynamics.
Marc Lasry, Co-Founder and CEO of Avenue Capital Group, stated: "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. Our Aviation team looks forward to continuing to realize the value of the projects."
Partners Group's Infrastructure Partnership Investments business focuses on LP-led portfolios, GP-led investments, and complex situations. 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, while Avenue Capital Group was advised by Latham & Watkins and Perella Weinberg Partners.
This transaction underscores the growing appeal of aviation leasing as an infrastructure investment, driven by resilient demand and strong growth potential in the sector. For more information, visit Partners Group or NewMediaWire.
