AIP Capital, an alternative investment manager focused on opportunities in asset-based finance, formed a venture with Monroe Capital, an asset management firm specializing in private credit markets and asset-based finance, to acquire a diversified aircraft leasing portfolio of up to $1 billion of investments, consisting of mid-life aircraft on long term lease to airlines globally. Monroe will provide the investment capital and has identified AIP Capital to act as servicer of the assets.

This venture will seek to acquire a diversified aircraft leasing portfolio, initially targeting approximately $1 billion of investments in mid-life aircraft on long-term lease to airlines globally. AIP will act as servicer of the assets. Monroe has secured commitments from Deutsche Bank (New York branch) and Fifth Third Bank for an initial $500 million senior secured warehouse facility to support the acquisition of aviation assets.

“We are excited to announce this partnership with Monroe Capital Alternative Credit Solutions. This venture provides scalable and stable capital; critically, it enhances value to our global airline customers and lessor trading partners even as capital markets have increased volatility,” Jared Ailstock, managing partner at AIP, said. “We look forward to scaling this venture over the coming months with Monroe, one of the most trusted firms in asset-based finance.”

“We are pleased to partner with AIP as we expand our asset-based finance business into the aviation sector,” Aaron Peck, managing director and co-head of alternative credit solutions at Monroe, said. “This venture reflects our strategy of aligning with experienced operators in sectors with strong asset fundamentals and long-term demand visibility. We believe aviation is a natural extension of our platform, and this venture positions us to deliver attractive, risk-adjusted returns for our investors.”

Gibson Dunn served as transaction counsel and PwC acted as tax advisor to AIP Capital. Milbank served as transaction counsel and KPMG acted as tax advisor to Monroe.