AE Industrial closes US$418 million Aerospace Leasing Fund II

AE Industrial Partners (AE Industrial), a private investment firm focused on National Security, Aerospace and Industrial Services, has announced the successful closing of its second aerospace leasing fund, AE Industrial Partners Aerospace Leasing Fund II, LP (Aerospace Leasing Fund II). The fund was oversubscribed, securing total capital commitments of US$418 million, a testament to robust backing from both existing and new investors. These commitments came from a diverse group of institutional investors, including public and private pension funds, family offices and endowments.

Launched in 2020, AE Industrial’s aerospace leasing platform capitalises on its core strengths in sourcing, structuring, and managing late life current technology commercial aircraft and engines, business jets, and special mission aircraft tailored for government contracts. So far, Aerospace Leasing Fund II has deployed over 35% of its capital to acquire a fleet of 20 assets. With this latest fund, AE Industrial is expanding its leasing strategy with the aim of delivering attractive risk-adjusted returns, providing both current income and capital appreciation.

“We are grateful for the strong interest we have seen in our latest fund from both existing and new investors,” said David Rowe, Co-CEO & Managing Partner at AE Industrial. “This enthusiastic response underscores our team’s deep experience, track record, and global network. It also demonstrates that investors are looking for longer-term opportunities with strong underlying assets that can insulate them from market volatility while providing more predictable returns.”

“A convergence of industry tailwinds, including production bottlenecks, and airlines becoming more focused on utility and reliability, have continued to drive strong demand for commercial leased aerospace assets. This, coupled with the robust global growth for specialised or modified aircraft, creates unique well-structured investment opportunities,” said Nathan Dickstein, Partner and Head of Aerospace Leasing at AE Industrial. “With our dedicated capital and broader leasing platform, we will continue to provide innovative solutions to our global base of customers.”