Castlelake is targeting struggling UK airline easyJet, which has seen shares fall nearly 35% over the past year and 75% from its peak. The $37bn private credit firm, founded by Evan Carruthers and Rory O'Neill two decades ago, faces criticism from easyJet executives who called the approach "highly opportunistic." The potential bid has already caused easyJet's stock to jump 10%.

Castlelake has grown into a major aviation finance player, owning and leasing 375 aircraft to carriers including Etihad and Qantas. The firm sees value in easyJet's £5bn net asset base, particularly its fleet of 86% owned next-generation Airbus A320neo jets that command strong demand in the leasing market.

The takeover faces regulatory hurdles as EU rules mandate European airline control remain primarily with continental entities. Despite these obstacles, the potential deal represents a significant shift for Castlelake, which has traditionally served as a creditor to airlines rather than taking equity stakes. Brookfield's 2024 majority investment in the firm provides additional resources for such moves.