Daiwa Securities Group, its consolidated subsidiary Daiwa Securities and Airborne Capital agreed to enter into a capital and business alliance in the aircraft leasing sector on Nov. 22, 2024.
Daiwa Securities Group and Airborne Capital have agreed to enter into this alliance with the aim of enhancing their ability to provide solutions that meet the needs of high-net-worth individuals and other clients in the wealth management business by leveraging the strengths and resources of both companies.
Daiwa Securities Group will contribute its extensive customer base, including high-net-worth individuals and corporate clients, while Airborne Capital will provide its specialized expertise in aircraft asset management to the joint venture. The joint venture company will offer support to clients through the proposal of Japanese operating lease (JOL) products and the management of leasing services. Furthermore, the implementation of personnel exchanges, including secondments, is planned.
Currently, Airborne Capital is engaged in proposing JOL products, supporting customers in lease management and operating aircraft investment funds. Going forward, all business related to JOL products will be consolidated into the joint venture under the Alliance.
Airborne Capital Japan, a Japanese subsidiary of Airborne Capital, will undergo a reorganization into a corporation. Subsequently, Daiwa Securities Group will acquire common shares and non-voting preferred shares of the target company through a third-party allotment. Post-capital increase, the ownership ratio will be 50% for Daiwa Securities Group and 50% for Airborne Capital. Additionally, the target company is expected to change its name to “Daiwa Airborne Co., Ltd.” (pending confirmation) as part of the joint venture development. This joint venture will serve as a foundation for further deepening the Alliance.
“As our basic group management policy, we have set the goal of ‘maximizing the value of customer assets.’ By deeply understanding our customers, we provide comprehensive consulting on total assets, focusing on portfolio proposals to pursue the best performance over the medium to long term, thereby contributing to maximizing customer asset value and corporate value,” Akihiko Ogino, president and CEO of Daiwa Securities Group, said. “In the aircraft leasing sector, we offer products through introductions to major leasing companies in collaboration, targeting high-net-worth individuals and corporate clients. We have built a solid track record of collaboration with Airborne Capital, one of the world’s leading aircraft asset management companies. We believe that their business model, which provides tailored solutions to meet customer needs, supports our group’s ‘customer-first operations.’ Through this Alliance, we will develop joint ventures and offer a lineup of aircraft leasing products, which are highly demanded by ultra-high-net-worth individuals and other clients, as part of our total asset consulting solutions.”
“We are an aircraft asset management specialist company headquartered in Ireland, with operations in seven locations worldwide, including Tokyo. We are very excited to launch this partnership with Daiwa Securities, whose deep market reach and innovative solutions make them an ideal partner to expand our existing business in Japan,” Ramki Sundaram, CEO of Airborne Capital, said. “This formalizes our existing collaboration and aims to merge Daiwa Securities’ strength in delivering tailored high-value solutions with our aviation expertise, enabling the expanded offering of specialized aircraft leasing products in Japan, a key market in Airborne’s global growth strategy.”
The final contract will be signed on Nov. 22, 2024, and after the reorganization of the target company into a corporation, the payment for the third-party allotment is scheduled to be made around January 2025. The payment date may change due to procedures related to the commencement of the joint venture.
