Prime Capital has successfully launched the Prime Capital Aviation Debt Fund (PCAD), a SICAV-SIF-subfund of Prime Capital Debt SCS in Luxembourg. The fund will invest in senior, aircraft-backed loans. With the first closing we are pleased to announce that several insurance companies have already committed USD 115m to the fund. With regards to following closings, Investors will be able to invest additional capital of up to a total volume of USD 400m. For the closed-end fund an investment period of up to 2 years is planned. The tenor is 10 years with two additional extension options. The aircraft -standard Airbus and Boeing models- which are financed by the loans are expected to be run by airlines worldwide and are therefore fungible. The fund is denominated in US-Dollars, in line with the underlying aircraft loans, and its target net return is expected to be in excess of 4%.
Prime Capital will work together exclusively with DVB Bank SE (DVB), one of the leading banks in the aviation debt market, as a sourcing partner. The bank ensures long-term access to attractive investment opportunities for the fund and adds its extensive aircraft expertise to each transaction. Prime Capital and DVB have been cooperating in this asset class for more than a year now and have already successfully invested over USD 200m for Institutional Investors together.
Prime Capital has operated in the aircraft financing market since 2014. Until today, the company’s focus has been customized mandates in aviation debt financing for its Institutional Clients. Following the launch of PCAD, access to this success story is now available to further investors. With over 150 financed aircraft Prime Capital proves a long-term history in this segment. In total, current assets under management and commitments in aviation finance sum up to an amount of USD 1.2 bn.