BREVARD, N.C. and BOYTON BEACH, Fla., Aug. 08, 2023 -- Carofin, a Carolina Financial Group company, and Blu Miles Aviation Services, a leading aviation management consultancy, have announced the successful funding of a single-purpose vehicle, Teardown Funding 2, LLC (TF2), created to acquire an Airbus A330-200 aircraft fir teardown and serviceable parts harvesting and subsequent sales. Teardown and parts consignment sales will be administered by Owl Aerospace.
Carofin raised $1,950,000 through a preferred equity structure that is intended to pay distributions to investors in concert with a 39-month consignment program that will be administered by Owl Aerospace. With headquarters in Hollywood, FL, Owl is strategically located between Miami International Airport and Fort Lauderdale/Hollywood International Airport, major hubs for airline routes.
“This fundraising assignment was wrapped up in a few weeks,” said Garrick Ruiz, VP of Sales and Syndication at Carofin. “We’re thrilled to build upon the success of prior aviation capital raises with Blu Miles and provide our growing investor base with an investment theme that’s proven successful.”
Blu Miles provided aircraft valuation and aviation industry advisory services, identifying Owl Aerospace as the ideal consignment partner to handle post-teardown remarketing and sales of harvested aircraft parts. Owl and Carofin collaborated on the financial structure to assure TF2 meets the needs of Owl’s extensive maintenance, repair and overhaul (MRO) customer base who serve the global airline industry.
“On each new program, Carofin and Blu Miles continue to expand our aviation offerings and distribution network and provide ever-greater value to investors,” noted Blu Miles CEO David Deal. “It’s great to see the success of this consignment program investment model. And in TF2, with Carofin and Owl Aerospace working together, the sum of the parts is clearly greater than the whole.”
There are nearly 1,500 Airbus A330 passenger aircraft in service, with demand for those seats growing thanks to greater leisure and business air travel. As those aircraft log more hours, regular parts maintenance and replacement become critical. To lower repair costs, operators turn to Used Serviceable Materials parts harvested from aircraft no longer in service. The TF2 investment vehicle was created to meet that growing demand for used parts and maximize the residual value of the end-of-life aircraft.
Commenting on the collaboration, Owl Aerospace President Alon Cohen stated that “Carofin came highly recommended from Blu Miles. They executed swiftly on the capital need here, and now we can go to work getting critical parts to our MRO partners.”
Accredited investors and family offices are increasingly turning to direct private investments as a source of current income for their portfolios beyond the public markets, added Carofin’s Ruiz.
“Carofin prides itself on being a trusted source of compelling, structured direct private investments for accredited individual investors, family offices and lower-middle market financial institutions,” he said.