Willis Lease Finance, a lessor of commercial aircraft engines and a global provider of aviation services, established Willis Aviation Capital (WAC), a new division that will focus on the management of third-party assets and capital through discretionary funds. Willis Lease will manage engine and aviation asset portfolios primarily funded by third-party capital. The platform is expected to generate recurring management fees, carried interest and servicing revenues, while expanding Willis Lease’s asset management presence and supporting balance sheet deleveraging.
“The establishment of WAC is intended to bring attractive returns to its partners by leveraging Willis Lease’s industry-leading leasing and services platform,” Austin C. Willis, CEO of Willis Lease, said.
Willis Lease has partnered with institutional investors to help launch the platform, including its recently announced leasing partnership with Blackstone Credit & Insurance ($1 billion) and credit strategy with Liberty Mutual Investments (up to $600 million), both of which will be managed in collaboration with WAC. In addition, WAC will oversee Willis Lease’s existing joint ventures with Mitsui & Co. and China Aviation Supplies, as well as select third-party aviation assets in which Willis Lease does not hold an equity interest.
The WAC structure is designed to support Willis Lease’s return profile through:
- Durable income streams and recurring revenue from institutional funds, joint ventures and select aviation assets to drive shareholder value
- Increased volume of aviation assets serviced across Willis Lease’s operating and joint venture businesses, including:
- Willis Aeronautical Services: engine materials business
- Willis Engine Repair Centers in the U.S. and U.K.: engine MRO business
- Willis Aviation Services Limited: airframe maintenance and teardown business
- Willis Mitsui & Co. Asset Management: consulting and CAMO business
- Willis Global Engine Testing: test cell joint venture
Enhanced transaction scale, enabling more programmatic investments and greater lessee diversification
WAC will be led by Brian R. Hole, who has been appointed global head of managed funds and credit. Hole joined Willis Lease in 2014 as chief investment officer and has served as president since 2016. Dan Coulcher, formerly chief commercial officer for Willis Lease in EMEA, has been named senior vice president of joint ventures and will report to Hole.
“We are excited to officially launch Willis Aviation Capital with two great partners in Blackstone and Liberty Mutual Investments,” Hole said. “The strength of our business is in the deep and diverse professional experience of our people. This new platform allows us to leverage that experience as an asset manager on a much larger scale, positioning us to capture incremental demand for engine leasing, lending, maintenance services and programs.”
