London-listed private markets investor Bridgepoint has teamed up with GFH Bank and alternative investment manager AIP Capital to build an aircraft engine leasing platform worth more than $1bn (£755.5m).

The platform will acquire aircraft engines and lease them to airlines, maintenance, repair and overhaul providers as well as other operators.

GFH, a Bahrain-headquartered bank with more than $25bn in assets and funds under management, joins as cornerstone investor and strategic partner, with Bridgepoint funds and AIP Capital also committing capital.

The deal marks GFH’s entry into the aviation sector.

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“Aircraft engines represent a compelling asset class, combining resilient, contracted cash flows with robust long-term structural demand,” said Hammad Younas, chief executive of GFH Equities.

“We look forward to working alongside our partners to scale the platform and provide investors across the region with access to this growing segment of the global aviation market.”

Bridgepoint and AIP Capital first joined forces in 2024 to buy an initial portfolio of LEAP-1B engines, and in July agreed to purchase a further 11 from CFM International.

All three partners will now raise money from institutional and private wealth investors as they scale towards the $1bn target for the platform.

AIP Capital will lead the sourcing, asset management and trading of the portfolio, which will span next-generation and current-generation engine types. The platform will invest through direct purchases from manufacturers, sale-and-leaseback transactions with airlines, secondary acquisitions and finance leases.

Bridgepoint said the partnership expands its asset-backed investment strategy and deepens its presence in the Middle East.

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“The Middle East is one of the fastest-growing sources of capital for private markets and a priority region for Bridgepoint,” said Marc Younan, managing director and head of Middle East investor relations at Bridgepoint.

“We are delighted to welcome GFH, one of the Gulf’s most established financial institutions, as a strategic partner to the venture.”

The partners said aircraft engines benefit from long-term structural demand, with extended maintenance turnaround times, growing backlogs for new aircraft and sustained growth in air travel fuelling the need for spare engines.

The Gulf Cooperation Council, home to some of the world’s fastest-growing airlines and aviation hubs, is an important driver of that demand, they added.

“Engines are one of the most attractive asset-based opportunities right now, providing a cash-generative asset with a genuinely differentiated return driver,” said Rohit Dhote, partner and co-head of credit opportunities at Bridgepoint.

“That is a valuable diversifier for our limited partners.”

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