AIP Capital and Monroe Capital launch aircraft leasing venture

AIP Capital (AIP), a global investment manager specialising in asset-based finance, has announced a strategic partnership with Monroe Capital LLC to acquire a diversified aircraft leasing portfolio worth up to US$1 billion. The portfolio will consist of mid-life commercial aircraft placed on long-term leases with airlines worldwide.

Under the agreement, Monroe Capital will provide the investment capital while AIP will act as servicer of the assets, overseeing portfolio operations and airline engagement. To support the initial phase, Monroe has secured a US$500 million senior secured warehouse facility from Deutsche Bank AG New York Branch and Fifth Third Bank.

“We are excited to announce this partnership with Monroe Capital Alternative Credit Solutions. This venture provides scalable and stable capital; critically, it enhances value to our global airline customers and lessor trading partners even as capital markets have increased volatility,” said Jared Ailstock, Managing Partner at AIP. “We look forward to scaling this venture over the coming months with Monroe, one of the most trusted firms in asset-based finance.”

Aaron Peck, Managing Director & Co-Head of Alternative Credit Solutions at Monroe commented: “This venture reflects our strategy of aligning with experienced operators in sectors with strong asset fundamentals and long-term demand visibility. We believe aviation is a natural extension of our platform, and this venture positions us to deliver attractive, risk-adjusted returns for our investors.”

Legal counsel for the transaction was provided by Gibson Dunn for AIP and Milbank LLP for Monroe, with PwC and KPMG acting as tax advisors respectively.

AIP Capital manages approximately US$4 billion in assets globally, with offices in Stamford, New York City, Dublin, and Singapore, and a team of over 30 professionals.