KKR, a global investment firm, and Altavair AirFinance, a commercial aviation finance firm, have agreed to form a long-term partnership to create a global portfolio of leased commercial aircraft.
KKR will make a $1 billion capital commitment, primarily from its credit and infrastructure funds, which may be supplemented with additional commitments over time, to acquire commercial aircraft in partnership with Altavair over the next several years, and Altavair will be KKR’s partner for aircraft leasing investments going forward. KKR also will acquire a 50 percent interest in Altavair as part of the long-term partnership.
KKR’s initial investment will go toward the acquisition of six cargo aircraft on long-term lease with a diverse group of airline counterparties.
“Since our first investment in aircraft in 2015, we’ve recognized the increasing demand for both passenger and freighter aircraft,” says Dan Pietrzak, member of KKR.
Formed in 2003, Altavair and its management team have executed multiple commercial aviation leasing and finance strategies during all points within the commercial aviation cycle on behalf of a broad range of domestic and international institutional, insurance and private investors.