Monroe Capital and AIP announce aircraft leasing venture
US-based asset manager Monroe Capital and AIP Capital have announced a joint aircraft leasing venture.
Monroe, which specialises in private credit markets, will seek to acquire a diversified aircraft leasing portfolio of up to $1bn (around £730m) of investments consisting of mid-life aircraft on long-term lease to airlines globally.
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The firm will then provide the investment capital, while AIP will act as a servicer of the assets.
Monroe has secured commitments from Deutsche Bank AG’s New York branch and Fifth Third for an initial $500m senior secured warehouse facility to support the acquisition of aviation assets.
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“We are pleased to partner with AIP as we expand our asset-based finance business into the aviation sector,” said Aaron Peck, managing director and co-head of alternative credit solutions at Monroe.
“As the global commercial aircraft market continues to experience strong tailwinds, we are well-positioned to be able to provide the financing solutions necessary to allow airlines to efficiently manage their capital requirements,” added Aaron Levy, managing director, alternative credit solutions at Monroe.
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