Monroe Capital and AIP Capital have announced the close of MCAV 2026-1, a $643m (£477.4m) aircraft asset-backed securitisation and the first transaction issued through their joint aircraft leasing venture.

MCAV 2026-1 consists of a portfolio of 18 commercial aircraft leased to 12 airline operators across 10 jurisdictions, including predominantly narrow-body aircraft across Europe, Asia, the Middle East, Africa and Latin America, valued at approximately $739m.

The transaction, which was supported by a group of institutional investors, included around $547m of Class A notes, $66.5m of Class B notes, and Class C notes totalling $29.6m.

The Monroe-AIP aviation leasing venture launched in 2025, with Monroe Capital providing the investment capital and AIP acting as servicer for the platform.

“The successful closing of MCAV 2026-1 marks an important milestone for Monroe’s alternative credit solutions platform and reflects the strength of our asset-backed finance capabilities,” said Aaron Peck, managing director and co-head, alternative credit solutions at Monroe.

“This transaction reflects the quality of the portfolio assembled through our partnership with AIP and our disciplined approach to aviation investing,” added Aaron Levy, managing director, alternative credit solutions at Monroe. “We believe commercial aviation continues to offer compelling investment opportunities supported by strong asset fundamentals, favourable supply-demand dynamics, and the continued growth of global air travel. The successful execution of this inaugural securitisation highlights the strength of the platform.”

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Deutsche Bank Securities, BNP Paribas Securities and Fifth Third Securities acted as co-structuring agents and joint lead bookrunners, while Citigroup Global Markets acted as joint lead bookrunner, with Natixis Securities Americas and BMO Capital Markets serving as bookrunners and KeyBanc Capital Markets acting as co-manager.

Monroe’s alternative credit solutions group is focused on asset-backed finance and complex special-situation structured debt and equity financings across asset types and geographies. 

Its key areas include specialty finance opportunities, such as royalty finance, consumer finance, litigation finance, fund finance, and commercial finance, as well as hard-asset strategies, such as real estate, digital infrastructure, aircraft finance, and equipment finance.

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