Air T launches aviation asset management vehicle with up to US$408 million equity capital

Air T, an industrious American holding company which operates a group of independent, yet interrelated, aviation businesses, has announced the formation of a new aircraft asset management business called Contrail Asset Management (CAM), and a new aircraft capital joint venture called Contrail JV II LLC (CJVII). The new joint venture has been formed as a scalable asset management platform that complements Air T’s existing operating businesses. The new venture will focus on acquiring commercial aircraft and jet engines for leasing, trading and disassembly. CJVII will target investments in current-generation narrow-body aircraft and engines, building on Contrail Aviation Support’s (Contrail) comprehensive origination and asset management expertise.

CJVII will initially be capitalized with up to US$408,000,000 million of equity from Air T and three institutional investor partners, consisting of US$108,000,000 million in commitments and US$300,000,000 million in upsize capacity, contingent on underwriting and transaction appeal. The three investor partners bring significant aviation experience to the joint venture. SRA Capital Partners, a division of Split Rock Aviation, supported Air T in raising the institutional commitments.

“We believe our customers will continue to be well-served by the capabilities that Contrail and Air T bring to the marketplace,” said Nick Swenson, Chairman & CEO of Air T. “Win+Win dynamics emerge when seasoned professionals execute from within a well-capitalized and well-organized operating platform.”

Added Swenson, “Contrail’s track record, market access and management know-how have attracted three very savvy institutional investors. Recognizing the significant challenges and opportunities which our industry faces as we head into the post-pandemic recovery period, our investment partners have shown great confidence in Contrail’s team and we are honored to be working with them. Together with the investor’s substantial financial firepower, our new venture aims to repay that confidence by building a scalable business which meets the many and varied needs of our growing customer base.”