UK investment manager M&G Investments (M&G) has committed a $300m equity investment in aircraft asset manager Sky Leasing’s first aircraft leasing fund.
It will also acquire an undisclosed stake in Sky Leasing.
As a servicer to this fund, Sky Leasing intends to offer fleet solutions by acquiring current-generation and next-generation aircraft from manufacturers such as Boeing and Airbus.
Sky Leasing chief executive officer Austin Wiley said: “We are excited to launch this first aircraft fund with M&G, who supports our vision for the growing opportunity to provide capital and aircraft fleet solutions to our global airline customer network, in addition to providing liquidity in the aircraft trading market.
“We look forward to building a best-in-class portfolio with an initial target of $1 billion of Boeing and Airbus aircraft.”
M&G’s stake acquisition in Sky Leasing is part of its strategy to support the growth of its asset management platform, including the launch of its Irish servicing operation and for continued operations in San Francisco, California.
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By GlobalDataThe aircraft leasing market enables airlines to efficiently update their fleets with next-generation aircraft.
M&G Investments private credit co-head Alex Seddon said: “The management team’s expertise will enable our clients to access an attractive asset class that produces long term cash flows and which is underpinned by strong fundamentals.
“This strategic partnership builds on our experience of investing in aircraft leasing through the ABS and private debt markets, and is an example of how we can structure innovative investment solutions to benefit our clients.”