Yieldstreet Adds New Asset Class With Launch of The Aviation Fund
Yieldstreet, the alternative investing platform helping retail investors build income-generating investment portfolios, today announced the launch of the Aviation Fund, which will seek to provide investors exposure to the potential global recovery in aviation.
The aviation industry has experienced substantial distress due to the unprecedented circumstances caused by the pandemic. The Aviation Fund’s primary strategy will be to place a portion of its commitments under the management of a leading aviation investment manager and/or in other similar aviation opportunities.
The Aviation Fund will seek to capitalize on the potential recovery in aviation by gaining indirect exposure to approximately 40 used commercial aircraft and engines, including regional jets, on lease to airlines and operators globally at potentially depressed purchase prices.
Over the last 30 years, major airlines, including Delta, British Airways and Lufthansa, have shifted toward an aircraft leasing model rather than owning and maintaining the aircraft. As of 2020, 42% of the global aircraft fleet was leased as compared to 24% in 1999 and 14% in 1989. The leasing model helps improve operating flexibility, reduce capital expenditures and better manage cash flows for airlines.
“Historically, investing in aviation leasing could require a minimum commitment north of ten million dollars. This marks the first time commercial aircraft and engines are being democratized, with investment offering minimums in the thousands, to enable exposure for retail investors,” said Michael Weisz, Founder and President of Yieldstreet. “We’re excited to bring Yieldstreet investors our new fund that allows them to participate in the potential upside of an expected rebound in the aviation industry.”
The firm is the only alternative investment platform to offer this array of multiple asset classes and strategies. The new Aviation vertical joins others such as Real Estate, Commercial, Consumer, Art, Marine, and Legal. With the launch of the Aviation Fund, Yieldstreet adds a new asset class vertical, Aviation Finance.
The Aviation Fund is furthering the company’s strategic vision to offer exposure to unique third-party investments to its members. Yieldstreet will continue to bring what it considers to be best in class managers to its platform with lower minimums, to enable retail investors to further diversify their portfolios.
Learn more about the Aviation Fund here.