KKR has made an additional $1.15 billion commitment to expand its global portfolio of leased commercial aircraft in partnership with Altavair, a commercial aviation finance company.
The investment will come from KKR’s credit and infrastructure funds. KKR has deployed and committed $1.7 billion of capital into aircraft deals since forming a partnership with Altavair and acquiring an interest in the company in 2018. The firm, in partnership with Altavair, has acquired more than 90 commercial and freighter aircraft through transactions such as lessor trades, airline direct used and new delivery sale leasebacks, structured transactions and passenger-to-freight conversions and has leased more than 75 percent of the portfolio to airlines and operators around the world. KKR has invested approximately $8.3 billion of total capital in the aviation sector since 2015.
“Aircraft leasing continues to be a dynamic and growing market that offers compelling and differentiated opportunities for experienced investors,” says Steve Rimmer, CEO of Altavair. “The portfolio that we’ve created over the past several years further evidences the power of combining KKR’s quality capital and capabilities with Altavair’s deep technical and aircraft investing expertise and innovation.”