Partners Group’s infrastructure secondaries strategy has committed $250 million to a continuation vehicle established by Avenue Capital Group to hold a global commercial aviation leasing portfolio — one of the largest transportation transactions Partners Group’s infrastructure secondaries strategy has completed to date. Partners Group is the sole lead investor in the approximately $360 million vehicle, while Avenue Capital Group’s aviation team will continue managing the assets.
The portfolio consists of 69 mid-life aircraft spanning narrowbody, widebody, and regional jet categories, leased to 30 airlines across Asia, Western Europe, and North America. Most cash flows are contracted, providing stable and predictable income, and the portfolio is structured to capture residual asset value at lease expiration through re-leases, aircraft sales, or disassembly.
“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,” said Jeremy Semble, head of infrastructure partnership investments Americas, Partners Group.
Partners Group has completed more than 70 infrastructure secondaries transactions since 2006 and is currently raising its latest infrastructure secondaries program, which includes a closed-end fund and co-investment mandates.
Ropes & Gray advised Partners Group; Latham & Watkins and Perella Weinberg Partners advised Avenue Capital Group.
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