Barings, which is one of the leading investment managers, announced that it has entered into a purchase agreement to buy a portfolio of narrow-body commercial passenger aircraft through its Capital Solutions platform, investing across the capital structure to deliver tailored solutions, partnering with Genesis, the full-service aircraft lessor that is wholly owned by Barings-managed funds, to originate, underwrite, and manage this portfolio of aircraft.
This portfolio includes 12 end-of-life narrow-body aircraft and their associated leases, which are valued at more than $200 million. Consistent with the Barings Capital Solutions team’s approach, the deal is structured to provide investors with contractual cash returns and additional upside through asset appreciation.
Barings’ Capital Solutions team originates, underwrites, structures, and prices risks to provide attractive returns throughout market cycles that are less correlated with traditional debt and equity strategies. The strategy pursues public and private market opportunities across the capital structure, focusing on secured debt and leveraging the sourcing and structuring expertise of the entire Barings platform globally to develop tailored solutions for counterparties.
KEY QUOTES:
“We are excited to partner with the Genesis team on this unique transaction which highlights the expansive origination capabilities of both platforms. We see significant value in the mid and end-of-life aircraft space in today’s market as global travel has recovered above pre-pandemic levels, while supply chain disruption has contributed to a supply-demand imbalance.”
- Michael Searles, Head of North America for Barings Capital Solutions
“We are proud that over the past 10 years, Barings and Genesis have built substantial in-house commercial aircraft investment capability to originate, underwrite, actively manage, and deliver strong risk adjusted returns across the full life cycle of a commercial aircraft investment.”
- Karl Griffin, Chief Executive Officer, Genesis
