26th April, 2023: LCI, a leading aviation company, has launched a pioneering Joint Venture (“JV”) with a US Public Pension (“UPP”), and plans to build an aviation and helicopter portfolio valued in excess of US$300 million.
The JV is the world’s first direct-to-pension fund investment partnership in the rotary market. Its inaugural transaction is the acquisition of a portfolio of seven modern helicopters, manufactured by Airbus, Leonardo, and Sikorsky valued at over US$70 million. The aircraft will predominantly operate in utility roles in Europe, the Americas and Africa. The UPP and LCI are co-investors in the vehicle, with LCI also acting as manager.
The UPP manages over US$10 billion of funds and the new partnership with LCI will connect operators and end-users with the expertise, resources and capital of both organisations.
Jaspal Jandu, CEO of LCI, says: “We are delighted to be forging this new partnership with UPP. Real assets, including helicopters, have long been recognised as a valuable and stable investment class, and investing requires specialised knowledge and extensive resources. This new JV will accelerate our strategy of bringing innovative financial solutions to our customers by providing them with access to alternative, unlevered and patient capital.”
The UPP’s Chief Investment Officer says: “We are thrilled to announce this pioneering partnership with LCI. Real assets offer tremendous potential in today’s environment and through our combined expertise, we aim to create a new investment model that will deliver robust returns and diversification benefits to our long-standing members. Having confidence in the experience, track record and capabilities of LCI, we look forward to the long-term partnership."
The partnership will focus on identifying and acquiring real asset opportunities, initially in the helicopter market, utilising a disciplined and strategic approach to portfolio management.
The new JV is the latest in a series of innovative partnerships that LCI has curated over recent years, all of which support LCI’s long-term strategy of providing the market with access to significant volumes of efficient capital, expertise, and structuring capabilities.