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 transaction, one of the largest transportation deals by Partners Group's infrastructure secondaries strategy to date, underscores the increasing alignment between aircraft leasing and infrastructure asset characteristics.
The portfolio comprises 69 mid-life aviation projects, including narrowbody aircraft, widebody aircraft, and regional jets. The lessee base is diversified across 30 airlines in Asia, Western Europe, and North America. Most cash flows are contracted, providing stable and predictable income. The portfolio is structured to maximize asset values at contract end through re-leases, aircraft sales, or disassembly.
The commercial aviation leasing market benefits from structural tailwinds, including a supply shortage of new aircraft due to production delays, which increases reliance on mid-life aircraft and spare parts. Additionally, aircraft engines are finding alternative industrial uses, supporting residual values and tightening supply dynamics. These factors make the sector attractive for infrastructure investors seeking resilient demand and growth.
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, where we look to provide investors with diversified exposure to sectors with resilient demand and strong growth potential.'
Marc Lasry, Co-Founder and CEO of Avenue Capital Group, added: '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, providing them with exposure to our strong portfolio of aviation projects that we have assembled over the past decade.'
The approximately USD 360 million continuation vehicle will be managed by Avenue Capital Group's aviation team. Partners Group was advised by Ropes & Gray, while Avenue Capital Group was advised by Latham & Watkins and Perella Weinberg Partners. For more information about Partners Group, visit www.partnersgroup.com or follow on LinkedIn. Details about Avenue Capital Group are available at their website.
