KKR to invest USD 1bn in Altavair to create leased commercial aircraft portfolio

Global investment firm KKR has announced it has partnered with commercial aviation finance company Altavair AirFinance to form a long-term partnership to pursue the creation of a leading, global portfolio of leased commercial aircraft, the company said.

KKR will make a USD 1 billion capital commitment primarily from its credit and infrastructure funds, which may be supplemented with additional commitments over time, to acquire commercial aircraft in partnership with Altavair over the next several years and Altavair will be KKR´s partner for aircraft leasing investments going forward. KKR will also acquire a 50% interest in Altavair as part of the long-term partnership.

KKR´s initial investment will go towards the acquisition of six cargo aircraft on long-term lease with a diverse group of airline counterparties.

KKR was advised by Simpson Thacher & Bartlett. Altavair was advised by Milbank.

KKR manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds.

Altavair L.P. is an asset manager focusing on the acquisition of new and used commercial aircraft for leasing to domestic and international passenger airlines and cargo operators. Since its inception in 2003, Altavair has completed over USD 8 billion in commercial aircraft lease transactions with over 40 airline customers in 27 countries representing over 200 individual Boeing and Airbus aircraft.