The Blue Sky Aviation strategy managed by EnTrust Global (“EnTrust”), a leading alternative asset management firm, and funds managed by Strategic Value Partners, LLC and its affiliates ("SVPGlobal"), a global investment firm, have today announced that they have entered into a definitive agreement to acquire the Aviation Investment and Asset Management business (the “Business”) from DVB Bank Group. The transaction is expected to close during the first half of 2021.
The Business, one of the top 10 aviation service companies globally, will be acquired through a newly incorporated UK company, Deucalion Aviation Limited (“Deucalion” or the “Company”). Today, the Business is a global aviation management platform that provides comprehensive turnkey solutions for financial investors looking to deploy capital in aircraft assets, through origination, structuring, execution, fund management and a full-fledged range of servicing activities, including aircraft remarketing, technical management, lease management and consultancy. The 45-strong team manages approximately 160 aircraft on lease to more than 80 airlines globally, representing approximately $5 billion in total asset value.
EnTrust and SVPGlobal’s investment is expected to provide the support required by the existing management team to build on its international growth strategy and explore complementary opportunities arising from the current aviation industry dislocation.
Deucalion, which will be led jointly by Jon Skirrow and Stephan Sayre, will be acquired through a joint venture formed between EnTrust and SVPGlobal, utilising the two firms’ complementary expertise. Senior members of the EnTrust Blue Sky Aviation and SVPGlobal teams have worked together on various transactions over the past 15 years.
Jon Skirrow said: “We are delighted to be partnering with EnTrust and SVPGlobal, following many successful years with DVB Bank Group. This new investment will support us in capitalizing on our strong growth trajectory, and we look forward to continuing to provide our world-leading services to our clients as we embark on the next stage of our development.”
Stephan Sayre added: “EnTrust and SVPGlobal, who share our vision of the opportunities in this sector today and in the long term, enable us not only to reinforce our commitment to providing best-in-class service for our clients, but also to significantly strengthen our offering of a broad array of innovative financing solutions to airline and leasing clients globally in the current environment.”
Victor Khosla, Founder & CIO of SVPGlobal, said: “This is an innovative platform with world class aviation expertise and an excellent track record in managing complex, large and unique projects across diversified asset types and structures over the last 17 years. Our investment as part of this joint venture with EnTrust is a testament to the sizeable market opportunity set we see ahead for the business.”
John Morabito, Senior Managing Director and Portfolio Manager of EnTrust Global’s Blue Sky Aviation strategy, said: “As we continue to build a multi-faceted, relative value investment platform in the aviation industry, this acquisition enhances EnTrust’s Blue Sky Aviation strategy with the full service capabilities critical to providing a wide offering of solutions to constituents within the market. We look forward to the opportunity to partner with SVPGlobal and the talented DVB management team, with whom our team has a long-standing relationship.”