KKR Launches AV AirFinance, A New Commercial Aviation Lending Platform
June 11 2021 - 7:00AM
Business Wire
Partners with finance industry veterans to
build a leading global aviation loan servicer anchored by stable,
long-term capital
Seeds platform with nearly $800 million
aviation loan portfolio acquired from CIT Group Inc.
KKR, a leading global investment firm, today announced the
launch of AV AirFinance Limited (“AV AirFinance”), a global
commercial aviation loan servicer established by a team of
experienced industry professionals together with KKR. The new
secured loan servicing platform combines stable, long-term capital
and decades of experience structuring commercial aircraft loan
transactions to offer creative and innovative financing solutions
to commercial aviation customers around the world.
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To support the launch, KKR and AV AirFinance have agreed to
purchase a nearly $800 million portfolio of aviation loans from CIT
Group, including over 50 loans for approximately 60 commercial
aircraft. The loans in the portfolio have an average yield in the
mid-single digits and an average term remaining of approximately
four years.
AV AirFinance is led by Chief Executive Officer Siggi
Kristinsson, an industry veteran who most recently co-founded and
served as CEO of Volito Aviation Services AB, a company providing
debt origination and advisory services to Goldman Sachs and other
financial institutions. Mr. Kristinsson is supported by a seasoned
team of aircraft financing specialists with decades of experience
in secured lending totaling over $25 billion in value across
multiple market cycles. Ryan Jasinski joins the AV AirFinance team
from CIT as part of the related portfolio purchase and will
continue to focus on loan origination in the Americas. Per
Waldelof, former president of PK AirFinance, serves as a consultant
advising on loan origination and other aspects of AV AirFinance’s
operations.
AV AirFinance will support a wide array of commercial clients,
including airlines, cargo operators, lessors, manufacturers and
investors, across all aspects of the ownership cycle, including
PDP, acquisition, leasing, conversion, and tear down. Through its
partnership with KKR, AV AirFinance has global origination
capabilities and the financial strength to arrange longer-term,
flexible, and competitive financing for a broad range of single
aircraft and large portfolio transactions.
“AV AirFinance is an exciting expansion of our asset-based
finance strategy into directly originated commercial aircraft
loans, which represent an attractive downside protected investment
opportunity for our long-term capital,” said Dan Pietrzak, Partner
and Co-head of Private Credit at KKR. “We are delighted to be
partnering with Siggi and his experienced team to build a new
leading loan servicing platform for the commercial aviation
market.”
Mr. Kristinsson said, “We are very excited to be entering the
market at this time to participate in the social and economic
recovery, which is driving demand for commercial aviation and
increasing the importance of the long-term financing solutions that
support the industry. With our strong foundation, experienced team
and the support of KKR, AV AirFinance is well positioned to deliver
tailored lending options and flexible terms that enable commercial
aviation customers to achieve their business goals.”
Patrick Clancy, Principal at KKR, added: “The launch of a
dedicated aviation lending platform marks a significant milestone
for KKR in the aviation sector, building on our experience in areas
including commercial aircraft leasing and private aviation. We are
thrilled to partner with the AV AirFinance team to offer
differentiated solutions to the market, and we see significant
opportunities for future growth supported by a large market
opportunity and the favorable long-term outlook for the commercial
aviation industry.”
The portfolio acquisition from CIT is being funded by separate
accounts managed by KKR. AV AirFinance is KKR’s latest investment
in the aviation sector and follows investments in Altitude
Aviation, Altavair, KKR DVB Aviation Capital, K2 Aviation, DCAL
Aviation, Wheels Up, Global Jet Capital and JetEdge, among
others.
About KKR
KKR is a leading global investment firm that offers alternative
asset management and capital markets and insurance solutions. KKR
aims to generate attractive investment returns by following a
patient and disciplined investment approach, employing world-class
people, and supporting growth in its portfolio companies and
communities. KKR sponsors investment funds that invest in private
equity, credit and real assets and has strategic partners that
manage hedge funds. KKR’s insurance subsidiaries offer retirement,
life, and reinsurance products under the management of The Global
Atlantic Financial Group. References to KKR’s investments may
include the activities of its sponsored funds and insurance
subsidiaries. For additional information about KKR & Co. Inc.
(NYSE: KKR), please visit KKR’s website at www.kkr.com and on
Twitter @KKR_Co.
About AV AirFinance Limited
AV AirFinance Limited is a commercial aviation loan servicer
established in partnership with KKR. AV AirFinance provides secured
financing solutions to airlines, lessors, manufacturers, and
investors. The team at AV AirFinance has decades of experience
structuring commercial aircraft loans and, through its partnership
with KKR, has the financial strength and the ability to provide
competitive financing along with knowledge to successfully
participate in the global commercial aviation lending space. AV
AirFinance maintains offices in Ireland and the US. For more
information, please visit www.avairfinance.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20210611005096/en/
Media: Cara Major or Miles Radcliffe-Trenner (212)
750-8300 media@kkr.com
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