Monroe Capital and AIP Capital announced a venture wherein Monroe will seek 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 to act as servicer of the assets.

Monroe has secured commitments from Deutsche Bank AG New York Branch and Fifth Third for an initial $500 million senior secured warehouse facility to support the acquisition of aviation assets.

“We are pleased to partner with AIP as we expand our asset-based finance business into the aviation sector,” said Aaron Peck, Managing Director & Co-Head of Alternative Credit Solutions at Monroe. “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.”

“As the global commercial aircraft market continues to experience strong tailwinds, we are well-positioned to be able to provide the financing solutions necessary to allow airlines to efficiently manage their capital requirements,” said Aaron Levy, Managing Director, Alternative Credit Solutions at Monroe.

“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,” said Jared Ailstock, Managing Partner at AIP. “We look forward to scaling the venture over the coming months with Monroe, one of the most trusted firms in asset-based finance.”

This transaction is representative of Monroe’s Specialty Finance division within the Alternative Credit Solutions Group. The group focuses on asset-backed finance (ABF), complex and special situation structured debt and equity financings that cover all asset types and geographies. In 2024, the Alternative Credit Solutions Group closed 19 debt and equity transactions. The team has a broad investment mandate, flexible capital and prides itself not only on its “bottoms up” expertise but also on its ability to move quickly and efficiently and provide confidence of execution on complex transactions. For over 20 years, the firm has been investing in asset-backed transactions with attractive collateral, as well as cash flow and enterprise value-based loans.