Partners Group, a global private markets firm, has invested $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, involves an approximately $360 million multi-asset vehicle. Avenue Capital Group's aviation team will continue managing the portfolio, which comprises 69 mid-life aviation projects, including narrowbody aircraft, widebody aircraft, and regional jets.
The portfolio's lessee base is diversified across 30 airlines in Asia, Western Europe, and North America, with the majority of cash flows contracted to provide stable income. The assets are structured to maximize value at contract end through re-leases, sales, or disassembly. This investment underscores the growing importance of aircraft leasing within the infrastructure asset class, driven by structural undersupply of new aircraft due to production delays and increasing alternative uses for aircraft engines.
Jeremy Semble, Head of Infrastructure Partnership Investments Americas at Partners Group, noted that aircraft leasing aligns well with their infrastructure secondaries strategy, offering resilient demand and strong growth potential. Marc Lasry, Co-Founder and CEO of Avenue Capital Group, emphasized that the continuation vehicle provided liquidity for existing limited partners and allowed continued partnership with Partners Group.
Partners Group's Infrastructure Partnership Investments business focuses on LP-led and GP-led transactions globally. The firm has completed over 70 infrastructure secondaries transactions since 2006 and is currently raising its latest infrastructure secondaries program. 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. Avenue Capital Group's media contact is Todd Fogarty at Kekst CNC, reachable via todd.fogarty@kekstcnc.com.
