In its Q3/16 earnings release Global Jet Capital reported that enquiries to finance mid to heavy private jets during Q3/16 were 59% higher than Q2/16 and 240% higher than Q3/15.
Global Jet Capital estimates that as much as $17.5 billion of funding will be needed in 2017 for business jet deliveries. It estimates that roughly 27% of this will be raised by high net worth individuals, with the rest evenly split between private and publicly listed companies.
The company currently has $2.5 billion in assets under management, 67% of which is through leasing via an operating lease with the remaining 33% via loans and capital leases.
“The majority of acquisitions of new and pre-owned jets use third-party capital to fully or partially fund the acquisition of the private aircraft they wish to use,” said Shawn Vick, who was recently named CEO of Global Jet Capital. “We offer a range of tailored solutions and are seeing a growing interest across all of these.
“Combined, our management team has over 200 years of service to the private aircraft industry, and between us we have completed over 3,500 aircraft transactions. We have the expertise, financial strength and industry relationships to develop tailored and flexible financing solutions for our clients.”
Global Jet Capital has over $1 billion to lend and is capitalized by three global investment firms: GSO Capital Partners, a Blackstone company in partnership with Franklin Square Capital Partners, The Carlyle Group and AE Industrial Partners. In January 2016 Global Jet Capital completed the purchase of GE’s corporate aircraft lease and loan book in the Americas.
Monitor 100 2017
The new lease accounting rules, ASC 842, are a major change for lessee customers. The rules are complex and will require lessees to do things they have never done before. Activity has lulled anticipating the transition occurring in 2019 for... read more
Monitor 100 2017
Equipment finance companies are responsible for financing a substantial portion of U.S. businesses’ capital expenditure budget through various channels of financial products. While these lenders can fund themselves in multiple wholesale financing markets, the asset-backed securities (ABS) market has proven... read more