Global alternative investment manager Castlelake announced it has entered into a sale-purchase agreement with leading global aviation finance company Avolon to sell a $5 billion, 118-aircraft portfolio held by Castlelake Aviation Limited (CA Ltd.).
Castlelake established CA Ltd. in 2021 to finance modern and fuel-efficient aircraft. And the entity’s portfolio grew to over $5 billion in asset value in the three years since its inception and consists of some of the most in-demand narrowbody, widebody, and regional jet aircraft types. The sale of this portfolio simultaneously contributes to Castlelake’s goal of delivering attractive risk-adjusted returns to its investors and provides Avolon with a fleet of high-quality aircraft assets.
Since its inception in 2005, Castlelake has been a strategic partner and active capital provider to aviation asset owners and lessees. It has invested $21+ billion in aviation opportunities, acquired over 650 aircraft, and developed relationships with about 200 airlines.
Its aviation platform includes in-house specialized teams dedicated to maximizing value at each stage of investing, financing, managing, and trading aviation assets. The deal is subject to the satisfaction of customary closing conditions and is expected to close in Q1 2025.
Goldman Sachs is Castlelake’s exclusive financial advisor, and Milbank LLP is its legal counsel.
KEY QUOTES:
“With this agreement, we’re pleased to achieve what we believe to be a great outcome for all involved parties. We’re proud of the incredible accomplishments of CA Ltd., thank our investors and partners for their support and look forward to reinvesting the proceeds of this transaction into new opportunities to provide innovative financings to airlines and leasing companies.”
-Joe McConnell, Partner and Deputy Co-Chief Investment Officer at Castlelake
“This transaction accelerates our growth plans adding a portfolio of assets that will further strengthen our cashflow and earnings profile. Our balance sheet strength, high levels of liquidity, and established capital markets access have enabled us to acquire these assets. They are complementary to our existing portfolio and will increase our fleet at attractive yields, supporting our positive ratings trajectory.”
-Andy Cronin, Chief Executive Officer at Avolon
