Castlelake, L.P. ("Castlelake"), a global alternative investment firm with approximately 17 years of experience investing in, financing and managing aviation assets, today announced that it has deployed $100 million through two new transactions in its Aviation Lending Program.
The first of the two transactions is a $75 million senior secured loan through a syndicated facility to a global aviation services group that will be used to finance cargo aircraft. The second is a $25 million senior secured loan to a European long-haul airline that is secured by an engine supporting the airline's global fleet. These recent transactions further support the expanding footprint of Castlelake's Aviation Lending Program.
"As airlines continue to look for bespoke financing in the current economic environment, we see a growing demand for our capital solutions," said Evan Carruthers, Managing Partner and Chief Investment Officer of Castlelake. "Since we hired Armin Rothauser to launch and build the Aviation Lending Program in late 2020, we've experienced great momentum and look forward to continuing to provide financing options that we believe help businesses achieve their goals while creating favorable outcomes for our stakeholders."
While Castlelake has been a long-time participant in aviation lending, the firm formally launched its Aviation Lending Program in late 2020 to address what it believed to be a systemic lack of financing capacity to serve the aviation sector. Through this program, Castlelake seeks to provide a variety of financing solutions to aircraft buyers including through senior secured, mezzanine and high loan-to-value financing. Since March 2020, Castlelake has originated, purchased or committed approximately $5.4 billion and expects to continue this strong momentum as it works with aircraft operators as a capital provider.
The Aviation Lending program builds on Castlelake's 17 years of experience investing in the aviation sector. The firm has invested over $17 billion in aviation opportunities since inception and has acquired more than 650 aircraft and developed relationships with approximately 200 airline partners.