KKR, a global investment firm, is making a $1.4 billion equity commitment to continue expanding its global portfolio of leased commercial aircraft in partnership with Altavair, a commercial aviation leasing and financing company. The latest commitment builds on two prior aircraft leasing portfolios created in partnership with Altavair. The investment will primarily come from KKR’s infrastructure and asset-based finance strategies.
“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, said.
KKR-managed funds have committed more than $8 billion to aircraft leasing and lending transactions since KKR formed a strategic partnership with Altavair in 2018. Over that time, KKR and Altavair have acquired 188 commercial aircraft and engine assets through a variety of transactions, including lessor trades, airline-direct new and used sale leasebacks, passenger-to-freight conversions and structured transactions, and, in the process, have leased aircraft and engines to 67 leading airline and cargo operators around the world.
“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,” Daniel Pietrzak, partner and global head of private credit at KKR, said. “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.”
Steve Rimmer, CEO of Altavair, added, “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.”
