Castlelake L.P. ("Castlelake"), a global alternative investment manager specializing in asset-based investing with nearly 20 years of experience in aircraft investing, leasing and servicing, today announced it has secured commitments for over $1 billion of aviation financing in a term loan facility to support its continued investment in and acquisition of in-demand aviation assets.
Commitments for the term loan facility, which was designed to provide longer-term flexibility compared to short duration warehouse facilities, were provided by Deutsche Bank, Goldman Sachs, BNP Paribas and MUFG. Castlelake is in various stages of acquiring more than 60 aircraft assets from leasing companies, airlines and other aircraft owners using financing from the facility. The aircraft financed by the facility, or contemplated to be financed by the facility, are on lease with approximately 30 airlines globally.
"Since Castlelake's founding in 2005, we have strived to act as a nimble, creative and long-standing participant in the aviation industry," said Joe McConnell, Partner and Deputy Co-Chief Investment Officer at Castlelake. "The completion of this financing facility coupled with our acquisition activity in 2024 is the latest demonstration of our enduring commitment to providing attractive capital solutions to aircraft asset owners and compelling risk-adjusted investment opportunities to our investors."
Since its inception in 2005, Castlelake has invested over $21 billion in aviation opportunities, acquired more than 650 aircraft and developed relationships with approximately 200 airlines. Recently, Castlelake announced an agreement to sell Castlelake Aviation Limited, a corporate leasing entity that it created in 2021 to finance a portfolio of modern, young, fuel-efficient aircraft. The sale agreement, which is subject to the satisfaction of customary closing conditions, contributes to Castlelake's goal of delivering attractive risk-adjusted returns to its investors while enabling it to reinvest proceeds into new aviation opportunities.