GECAS agreed to sell 20 in-production Boeing and Airbus narrow-bodies to START II in its STARR 2019-1 agreement. The sale closed with an affiliate of Oz Management acting as dedicated asset manager.

With an average aircraft age of less than six years, the diversified portfolio includes aircraft currently on lease to 13 airlines in 11 countries and has total appraised value of approximately $589 million.

START II is financing its acquisition through its issuance of 144A/Reg. S debt and equity. The sales are subject to typical conditions precedent including any regulatory approvals that may be necessary. The sale shares similarities with the STARR 2018-1 transaction, which was the first aircraft portfolio purchase vehicle structure to include 144A tradeable equity and a dedicated Asset Manager for equity investors. GECAS will continue to service the portfolio.

GECAS is a world-leading lessor with significant experience servicing aircraft. Having developed a successful model for servicing third-party aircraft, GECAS’ 25-year track record includes servicing more than 550 aircraft across 14 multi-owner platforms with initial portfolio values totaling greater than $14 billion.

An affiliate of Oz, through an exclusive, multi-year agreement with GECAS, will serve as an asset manager on this and potential future transactions, acting on behalf of the syndicated equity investors as an advisor to START II’s board regarding portfolio matters. In this capacity, Oz will provide increased transparency on behalf of START II through enhanced investor reporting to improve liquidity for debt and equity investors.

With nearly $1 trillion in outstanding market value in commercial aviation, this asset manager structure aims to broaden the investor base in the sector and bring increased institutional capital to the space, similar to other securitization markets such as CLOs. In addition, funds managed by Oz have invested equity in START II.

Oz Management is one of the largest institutional alternative asset managers in the world, with offices in New York, London, Hong Kong, Mumbai, and Shanghai. The company provides asset management services to investors globally through its multi-strategy funds, dedicated credit funds, real estate funds and other alternative investment vehicles.