Apollo Aviation Group (together with its affiliates, “Apollo Aviation”), a multi-strategy aviation investment manager, announced today that it has entered into an agreement to be acquired by The Carlyle Group (“Carlyle”). The transaction is expected to close no later than January 31, 2019, subject to customary conditions, after which Apollo Aviation will become Carlyle Aviation Partners Ltd. (“Carlyle Aviation”).
Since its founding in 2002, Bill Hoffman and Robert Korn have developed Apollo Aviation into a leading institutional investment manager focused on the aviation industry, with current assets under management of $5.6 billion1 and 243 aircraft owned, managed or committed to purchase.
Bill Hoffman, Apollo Aviation’s Chairman, commented, “Having carefully built Apollo Aviation from the beginning, one of the most important considerations for Robert and me was the cultural fit of the two organizations. In our meetings with Carlyle’s founders, Co-CEOs and other senior executives, we saw clearly that their view to invest wisely and create value on behalf of their investors was very much in line with our own views. Their honesty, integrity and clear sense of purpose that ‘we work for our investors’ helped us to decide that this was the right home for Apollo Aviation.”
Bill Hoffman and Robert Korn will lead Carlyle Aviation, which will operate within Carlyle’s Global Credit Segment.
Mark Jenkins, Head of Carlyle’s Global Credit Segment, said, “Apollo Aviation’s expertise in managing and investing in aviation assets and use of long-term structures allows it to invest well through economic cycles. We are excited to welcome the highly accomplished Apollo Aviation management team, which is a proven force in the growing commercial aviation finance market.”
Robert Korn, Apollo Aviation’s President, shared, “As part of The Carlyle Group, we will continue to access a broad range of aviation investment opportunities, and grow our position in the aircraft leasing and finance sector.” He added, “Over the next 20 years, the world’s commercial aircraft fleet is expected to double in size to approximately 40,000 aircraft and new aircraft deliveries alone will be valued at more than $6 trillion. For institutional investors worldwide, this is an attractive asset class that will be a growing part of any diversified portfolio.”
Apollo Aviation was advised by Milbank, Tweed, Hadley & McCloy LLP and Goldman Sachs & Co. LLC.