KKR commits to invest an additional $1.15 billion in aircraft leasing with Altavair
KKR has deployed and committed $1.7 billion of capital into aircraft deals since forming a partnership with Altavair and acquiring an interest in the company in 2018 and acquired more than 90 commercial and freighter aircraft
KKR, a leading global investment firm, and Altavair L.P., a leader in commercial aviation finance has recently announced that it is making an additional $1.15 billion commitment to expand its global portfolio of leased commercial aircraft in partnership with Altavair. The investment will come from KKR’s credit and infrastructure funds.
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. This development closely follows Altavair's announcement in October 2022 regarding the signing of a definitive agreement to lease 10 Airbus A330-300 aircraft to Amazon Air, following freighter conversions by Elbe Flugzeugwerke GmbH. In this case, the aircraft are owned by funds and accounts managed by KKR, with Altavair acting as the lease servicer. It was announced that the first of the A330 freighters will be placed in service with Amazon Air in late 2023.
KKR has in fact deployed and committed $1.7 billion of capital into aircraft deals since forming a partnership with Altavair and acquiring an interest in the company in 2018.
KKR, in partnership with Altavair, has acquired more than 90 commercial and freighter aircraft through a variety of transactions, including lessor trades, airline direct used and new delivery sale-leasebacks, structured transactions, and passenger-to-freight conversions, and has successfully leased more than 75% of the portfolio to tier-one airlines and operators around the world.
“We are thrilled to deepen our footprint in aircraft leasing through this new commitment, which underscores the conviction that we have in this space and our confidence in Altavair as a partner,” said Dan Pietrzak, KKR Partner and Co-Head of Private Credit. “We look forward to growing our portfolio further to support the fleet needs of airlines and operators around the world.”
“Airlines are increasingly seeking greater liquidity and fleet flexibility, which is creating significant opportunities for high-quality leasing teams with deep access to private capital,” said Brandon Freiman, KKR Partner and Head of North American Infrastructure. “We are proud to serve this growing need in partnership with Altavair.”
“Aircraft leasing continues to be a dynamic and growing market that offers compelling and differentiated opportunities for experienced investors,” said Steve Rimmer, CEO of Altavair. “The portfolio that we’ve created over the past several years further evidences the power of combining KKR’s quality capital and capabilities with Altavair’s deep technical and aircraft investing expertise and innovation. We greatly appreciate KKR’s ongoing trust in our platform and look forward to building further on this success in the years to come.”
KKR has invested approximately $8.3 billion of capital in the aviation sector since 2015. Investments include Altavair, AV AirFinance, Atlantic Aviation, KKR DVB Aviation Capital, K2 Aviation, Wheels Up, Global Jet Capital, and Jet Edge, among others.
According to its website, Altavair's portfolio includes twenty-one 777-300ERs, fourteen A320-200s, eleven 757-300s and A330-300s, and eight 777-200LR among a slew of other aircrafts.