Castlelake, a global alternative investment manager specializing in asset-based investing with nearly 20 years of experience in aircraft investing, leasing and servicing, has entered into a sale-purchase agreement with Avolon, a global aviation finance company, for the sale of a $5 billion, 118-aircraft portfolio held by Castlelake Aviation.

“With this agreement, we’re pleased to achieve what we believe to be a great outcome for all involved parties,” Joe McConnell, partner and deputy co-chief investment officer at Castlelake, said. “We’re proud of the incredible accomplishments of CA Ltd., thank our investors and partners for their support and look forward to reinvesting the proceeds of this transaction into new opportunities to provide innovative financings to airlines and leasing companies.”

“This transaction accelerates our growth plans adding a portfolio of assets that will further strengthen our cashflow and earnings profile,” Andy Cronin, CEO of Avolon, said. “Our balance sheet strength, high levels of liquidity and established capital markets access have enabled us to acquire these assets. They are complementary to our existing portfolio and will increase our fleet at attractive yields, supporting our positive ratings trajectory.”

The transaction is subject to the satisfaction of customary closing conditions and is expected to close in Q1/25. Goldman Sachs is acting as exclusive financial advisor to Castlelake and Milbank is acting as its legal counsel.