Avolon announced an agreement to acquire Castlelake Aviation (CA)’s total $5 billion portfolio of 118 aircraft. This includes 105 aircraft on lease, commitments for 13 new-technology aircraft, 2 engines on lease, and 9 loans.
CA was established in 2021 by the investment firm Castlelake. Over the past three years, its portfolio has grown to comprise a diverse mix of narrowbody, widebody, and regional jets. The sale aligns with Castlelake’s goal of delivering risk-adjusted returns to its investors while providing Avolon with in-demand aviation assets.
“This transaction accelerates our growth plans adding a portfolio of assets that will further strengthen our cashflow and earnings profile,” Andy Cronin, Avolon CEO, commented. “Our balance sheet strength, high levels of liquidity, and established capital markets access have enabled us to acquire these assets. They are complementary to our existing portfolio and will increase our fleet at attractive yields, supporting our positive ratings trajectory.”
Castlelake has been actively investing in the aviation sector since 2005, with over $21 billion invested in aviation assets and the acquisition of more than 650 aircraft. The company states it has developed strong relationships with nearly 200 airlines.
The transaction is expected to close in Q1 2025, pending customary closing conditions. Goldman Sachs & Co. is serving as the exclusive financial advisor to Castlelake, with Milbank LLP acting as legal counsel.
