SMBC Aviation Capital launched its Global Aviation Equipment Leasing Fund (GAEL), a closed-end fund which has raised equity capital from 17 Japanese institutional investors and a secured debt financing from an internationally recognized bank.

GAEL is the first aviation equity fund for Japanese institutional investors that SMBC Aviation Capital has launched. GAEL will acquire a portfolio of aircraft, on lease to a diverse group of international airlines, from SMBC Aviation Capital, who will remain as aircraft servicer.

Commenting on the announcement, Peter Barrett, SMBC CEO, said, “Aircraft leasing is a very desirable and stable asset class for investors, and GAEL provides a tailored opportunity for a number of Japanese institutional investors to enter into the aircraft leasing market. We are pleased to have worked closely with our colleagues at Sumitomo Mitsui Banking Corporation in assembling a group of top tier equity investors.”