Castlelake L.P., a global alternative investment manager specialising in asset-based investing with nearly two decades of experience in aviation, has announced commitments of over US$1 billion for a new aviation financing term loan facility. This facility will support Castlelake's ongoing investments in and acquisitions of high-demand aviation assets.
The financing facility, structured to offer longer-term flexibility compared to short-duration warehouse facilities, received backing from Deutsche Bank, Goldman Sachs, BNP Paribas, and MUFG. Castlelake is in various stages of acquiring over 60 aircraft from leasing companies, airlines and other aircraft owners, with the assets leased to around 30 airlines worldwide.
Joe McConnell, Partner and Deputy Co-Chief Investment Officer at Castlelake, stated, “The completion of this financing facility coupled with our acquisition activity in 2024 is the latest demonstration of our enduring commitment to providing attractive capital solutions to aircraft asset owners and compelling risk-adjusted investment opportunities to our investors.”
Since its inception in 2005, Castlelake has invested more than US$21 billion in aviation opportunities, acquired over 650 aircraft, and built relationships with approximately 200 airlines. Recently, the firm announced the sale of Castlelake Aviation Limited, a corporate leasing entity established in 2021, which finances a portfolio of young, fuel-efficient aircraft. The sale, pending customary closing conditions, aligns with Castlelake's strategy to deliver strong returns to its investors while reinvesting proceeds into new aviation opportunities.
