Mercuria Investment Co. (MIC), a subsidiary of Mercuria Holdings (MHD), and Airborne Capital Limited (ACL), an aircraft leasing and asset management company headquartered in Ireland, have agreed to jointly establish and operate a new open-ended aircraft fund, MACH OE.
To date, MIC and ACL have jointly offered closed-ended aircraft funds with portfolios tailored to Japanese investors. MACH OE represents a departure from this approach, as it will be structured as an open-ended fund. According to MHD research, it will be the first open-ended aircraft fund launched by a Japan-based asset manager in this sector.
MACH OE is designed to deliver stable returns by generating cashflows through investments in popular aircraft types leased to a carefully selected group of high-quality airlines. As an open-ended structure, the fund will also provide investors with greater flexibility, allowing them to determine when to enter and exit their investment.
The fund is targeting assets of approximately JPY 150 billion or more. The Development Bank of Japan is expected to participate as an anchor investor, with additional support anticipated from institutional investors including financial institutions, pension funds, corporates and educational institutions.
As part of the initiative, Daiwa JPI Alternative Investments Co. (DKAI), a group company of Daiwa Securities Group Inc., will support the fund through investor introductions and the provision of operational services. To further underpin the development of MACH OE, DKAI has also entered into a memorandum of understanding with MIC and ACL covering a strategic business alliance.
