Hyperion Aero Capital PLC (Hyperion) has launched an aircraft funding platform focused on providing financing for long-term cargo leasing and leased business jets. Hyperion has been established to combine decades of experience in aviation fleet management with financing to provide a range of currency-agnostic hybrid opportunities including debt, equity and convertible instruments for aircraft financing.
Financing for aircraft has become increasingly fragmented as the traditional lenders have retreated to more vanilla financing and yet the private aviation sector continues to grow. Post-COVID, shipping blockages and limitations on commercial aviation (less flights to fewer destinations) have hampered transport, logistics and business travel. Yet, both cargo and business travel are essential to keep the economy functioning and goods moving.
Eric Weisskopf, Managing Director of Hyperion Aviation said: “The lease financing market is well established for commercial aviation and represents some of the brightest minds in aviation financing who have, over the years, left the banking sector. The gap in financing for cargo and business jets is often unfulfilled because of the smaller number of aircraft which tend to be second hand. That being said, insurable, secured assets with predictable depreciation and servicing costs as well as quality lessors, assessing the credit risk for these transactions (and providing cost-effective financing) is achievable by establishing dedicated pools of capital. Applying a model which has worked effectively for real estate and renewable energy transactions, Hyperion will offer both investors and lessors a dedicated financing structure.”
A volatile stock market, four-decade high inflation, raising interest rates and geopolitical tensions this year have stunted the global market and contributed toward a dramatically changing role of alternative investments. Investors relying on the traditional game have experienced a serious decline in their portfolios and now have to refocus on alternatives to further diversify portfolios and protect against stubborn inflation and possible recession. Hyperion aims to attract investors refocusing on alternatives.