KKR announced a $1.4 billion equity commitment to continue expanding its global portfolio of leased commercial aircraft in partnership with Altavair.
Altavair is a commercial aviation leasing and financing company focused on acquiring new and used commercial aircraft for lease to passenger airlines and cargo operators.
The new commitment expands KKR and Altavair’s long-standing strategic partnership and builds on two prior aircraft leasing portfolios created together. The investment will primarily come from KKR’s Infrastructure and Asset-Based Finance strategies.
KKR and Altavair formed their strategic partnership in 2018. Since then, KKR-managed funds have committed more than $8 billion to aircraft leasing and lending transactions with Altavair.
Over the course of the partnership, KKR and Altavair have acquired 188 commercial aircraft and engine assets through lessor trades, airline-direct new and used sale-leasebacks, passenger-to-freight conversions, and structured transactions.
The companies have leased aircraft and engines to 67 airline and cargo operators globally.
KKR said the new commitment reflects its conviction in aircraft leasing as demand for air travel continues to grow and airlines seek greater liquidity and fleet flexibility.
KKR has invested more than $12 billion in the aviation sector since 2015. Its aviation-related investments include Altavair, AV AirFinance, Atlantic Aviation, KKR DVB Aviation Capital, K2 Aviation, and others.
Altavair was founded in 2003 and has completed more than $14.5 billion in commercial aircraft lease transactions with more than 80 airline customers in 50 countries. The company maintains offices in Seattle, Dublin, London, and Singapore.
KEY QUOTES:
“Nearly a decade of strategic partnership with Altavair has deepened our conviction in the attractiveness of aircraft leasing, which we believe is poised to grow even further as demand for air travel continues to rise and airlines seek more liquidity and fleet flexibility.”
Brandon Freiman, Partner and Head of North American Infrastructure at KKR
“We are pleased to deepen our long-standing relationship with Altavair and strengthen our commitment to the aviation sector through our Asset-Based Finance strategy. The success of our strategic partnership is a testament to the power of combining our patient, long-term capital with Altavair’s deep industry expertise and differentiated sourcing capabilities.”
Daniel Pietrzak, Partner and Global Head of Private Credit at KKR
“Our strategic partnership with KKR has grown stronger over the past eight years, and this latest commitment reflects the trust we have built together. KKR’s expertise, and long-term capital have helped build Altavair into the platform it is today. As airlines face significant fleet funding needs in the coming years, this expanded commitment positions us to be an even stronger partner and supporter across the aviation ecosystem.”
Steve Rimmer, CEO of Altavair
