Apollo Global Management entities, clients and funds managed by its affiliates completed approximately $1 billion in aircraft-related origination volume during Q2/21, making it the company’s most active quarter on record since it began investing in aircraft assets nearly a decade ago.
“We see a growing and sustained need for scaled providers of capital solutions and believe platforms like ours that combine in-depth technical knowledge with strong origination and structuring expertise are particularly well placed to help airlines and lessors solve their most pressing challenges,” Gary Rothschild, head of aviation at Apollo and CEO of Merx, said. “We view the significant momentum shown in the quarter as a testament to the strength of our integrated platform, flexible capital and ability to act as a solutions provider to the global airline industry as it continues to manage through the significant disruption from the last year.”
During the second quarter, Apollo completed fundraising for its inaugural dedicated aviation finance offering, Navigator Aviation Fund I, which provides exposure to directly sourced private deals across an opportunity set of aircraft types, vintages, airlines and jurisdictions. Since inception, Navigator has committed to 33 aircraft across 15 different operators.
Apollo also closed an issuance of $540 million of secured notes by MAPS 2021-1 Trust in the quarter. MAPS is an aircraft asset-backed securitization, serviced by Merx, financing a portfolio of 20 Airbus and Boeing aircraft valued at approximately $620 million. The portfolio features 18 narrow body aircraft and two wide body freighters, with a weighted average age of 5.8 years overall and 4.3 years excluding freighters, and a weighted average lease term of 8.4 years. Navigator retained the equity in the ABS.
Apollo’s aircraft and aviation financing business today consists of more than 50 professionals exclusively focused on aviation and led by senior executives experienced in aviation finance, investments and structuring.
In 2012, Apollo established Merx, a global aircraft leasing, management and finance company that operates in New York, Dublin and Singapore. In 2019, Apollo and Athene acquired PK AirFinance, an aviation-focused lender that primarily originates senior secured loans. Combined, the Apollo aviation platform currently finances more than 360 commercial aircraft and more than 60 engines.
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