Yieldstreet, an alternative investing platform, launched an aviation fund, which will seek to provide investors exposure to the potential global recovery in aviation. With the launch of the aviation fund, Yieldstreet added aviation finance as a new asset class vertical. The new aviation vertical joins Yieldstreet’s other verticals, including real estate, commercial, consumer, art, marine and legal.
The aviation industry has experienced substantial distress due to the COVID-19 pandemic. The aviation fund’s primary strategy will be to place a portion of its commitments under the management of aviation investment managers and/or in other similar aviation opportunities.
The aviation fund will seek to capitalize on the potential recovery in aviation by gaining indirect exposure to approximately 40 used commercial aircraft and engines, including regional jets, on lease to airlines and operators globally at potentially depressed purchase prices.
According to Yieldstreet, over the last 30 years, major airlines, including Delta, British Airways and Lufthansa, have shifted toward an aircraft leasing model rather than owning and maintaining aircraft. Yieldstreet also noted that, as of 2020, 42% of the global aircraft fleet was leased as compared with 24% in 1999 and 14% in 1989.
“Historically, investing in aviation leasing could require a minimum commitment north of $10 million. This marks the first time commercial aircraft and engines are being democratized, with investment offering minimums in the thousands to enable exposure for retail investors,” Michael Weisz, founder and president of Yieldstreet, said. “We’re excited to bring Yieldstreet investors our new fund that allows them to participate in the potential upside of an expected rebound in the aviation industry.”
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