I Squared Capital and a wholly owned subsidiary of the Abu Dhabi Investment Authority have agreed to launch Constellation Aviation, a new aircraft leasing platform, in partnership with Avolon. The fleet has an average age of about five years and is on lease to 17 airlines in 15 countries. The two investors will provide long-term institutional capital, while Avolon brings origination, leasing, and asset management expertise.
Avolon will retain a minority equity stake and act as Constellation's exclusive manager and servicer. Gautam Bhandari, Co-Founder and Global Chief Investment Officer of I Squared Capital, stated that aircraft manufacturers' order books now stretch a decade or more into the future, and airlines rely on lessors with scale and aircraft delivery slots to grow their fleets. Bhandari added that Avolon's large order books with Boeing and Airbus give Constellation immediate access to a modern portfolio and an established origination and servicing platform.
Source: PE Insights · Summarized by HeadlinesBriefing