KKR Commits to Invest $1 Billion with Altavair

KKR

NEW YORK & SEATTLE–(BUSINESS WIRE)–Jan. 3, 2019– KKR, a leading global investment firm, and Altavair AirFinance, a leader in commercial aviation finance, announced today that the two firms have entered into an agreement to form a long-term partnership to pursue the creation of a leading, global portfolio of leased commercial aircraft.

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KKR will make a $1 billion capital commitment primarily from its credit and infrastructure funds, which may be supplemented with additional commitments over time, to acquire commercial aircraft in partnership with Altavair over the next several years and Altavair will be KKR’s partner for aircraft leasing investments going forward. KKR will also acquire a 50% interest in Altavair as part of the long-term partnership.

KKR’s initial investment will go towards the acquisition of six cargo aircraft on long-term lease with a diverse group of airline counterparties.

“Since our first investment in aircraft in 2015, we’ve recognized the increasing demand for both passenger and freighter aircraft,” said Dan Pietrzak, Member of KKR. “The decades-long proven track record that Altavair brings to this partnership is impressive and it is exactly the kind of company we were looking for when we sought out continued investment in aviation.”

“Commercial aircraft are critical, long-lived assets that we’ve been interested in pursuing for several years,” said Brandon Freiman, Member & Head of North American Infrastructure at KKR. “We are excited to partner with Altavair’s world class management team to invest in the global aviation market.”

Altavair CEO Steve Rimmer said, “We are extremely happy to have found a partner in KKR that shares our vision for investing in the aircraft leasing and financing sector. The tremendous support and expertise offered by KKR alongside its exceptional global investor base will allow Altavair to fully participate in this growing market and provide a solid foundation for Altavair’s future growth and success.”

Formed in 2003, Altavair and its management team have successfully executed multiple commercial aviation leasing and finance strategies during all points within the commercial aviation cycle on behalf of a broad range of domestic and international institutional, insurance and private investors.

KKR was advised by Simpson Thacher & Bartlett. Altavair was advised by Milbank.

About KKR

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

About Altavair L.P.

Altavair L.P. is an asset manager focusing on the acquisition of new and used commercial aircraft for leasing to domestic and international passenger airlines and cargo operators. Since its inception in 2003, Altavair has completed over $8 billion in commercial aircraft lease transactions with over 40 airline customers in 27 countries representing over 200 individual Boeing and Airbus aircraft. Altavair maintains offices in Seattle, London, and Singapore. For more information, please visit www.altavair.com.

Source: KKR

KKR: Kristi Huller or Samantha Norquist, +1 212-750-8300, media@kkr.com

Altavair: Timothy O’Hara, +1 425-369-8062, timothy.ohara@altavair.com

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Nordic Aviation Capital adds new strong minority shareholder, GIC, to further support growth ambitions

eqt

  • GIC, Singapore’s sovereign wealth fund, is set to join NAC’s founder, Martin Møller and EQT VI as a significant minority investor in NAC
  • The transaction will comprise a partial sale by the existing shareholders and new capital to further strengthen NAC’s balance sheet
  • EQT VI will remain the largest shareholder and will continue to support NAC in solidifying its position as the global leader in regional aircraft leasing
  • Founder Martin Møller remains a significant shareholder and continue as Chairman of the Company

NAC, Martin Møller and EQT VI today announced that GIC, a leading long-term global investor with significant aircraft leasing experience, is to become a significant minority investor in Nordic Aviation Capital (“NAC” or “the Company”). The transaction will be executed by an affiliate of GIC.

Since the partnership in 2015 between Martin Møller and EQT VI, NAC has transformed from being a lessor focused on turboprop aircraft into the world’s largest regional aircraft lessor, and the fourth largest commercial aircraft leasing company by investing more than USD 4.5 billion in the business. During that period, NAC has more than doubled its operating lease income and added more than 30 new customers. Today the Company has a fleet of 468 regional aircraft, a total asset base of USD 8.0 billion and is uniquely positioned to take further advantage of the market opportunities in the attractive regional aircraft space.

“It is nearly three years since we partnered with EQT VI to support our growth strategy. Together, we continued our profitable growth and benefitted from the partnership’s global perspective, experience and financial strength. GIC brings further financial strength and commercial capabilities that will allow us to take advantage of expansion opportunities as they arise”, said Martin Møller, founder and Chairman of NAC.

“We have delivered on our key strategic objectives, broadened our product offering and expanded NAC’s operations significantly over the last years. Bringing in a new investor is a step further on the journey of consolidating NAC’s position as the world’s leading and preferred regional lessor of choice for our customers, OEMs, capital markets investors and our dedicated employees. Partnering with GIC will further strengthen our Company’s commercial and financial position”, Søren Overgaard, CEO of NAC elaborated.

“EQT VI is excited to welcome GIC as a long-term investor and a strategic partner given their significant aviation leasing experience. With the investment from GIC, NAC will be able to further enhance its growth journey by cementing its market position as the world’s largest regional aircraft lessor”, said Morten Hummelmose, Partner at EQT Partners and Investment Advisor to EQT VI.

“NAC has a strong track record of growth and market leadership in a segment with secular growth drivers. As a long-term investor, we look forward to partnering with Martin Møller and EQT and supporting the future growth of the company”, said Choo Yong Cheen, Chief Investment Officer of Private Equity at GIC.

KIRKBI Invest A/S, an investor in EQT VI, will continue to co-invest in NAC alongside EQT VI.

Contacts
Søren Overgaard, CEO of NAC and primary NAC press contact +45 7651 1200
Morten Hummelmose, Partner at EQT Partners, Investment Advisor to EQT VI +1 646 687 6814
Mah Lay Choon, Senior Vice President, Communications, GIC +65 98389425; Wendy Wong, Senior Vice President, Communications, GIC +65 97694302
EQT press contact +46 8 506 55 334

About NAC
NAC is the industry’s leading regional aircraft lessor serving over 73 airline customers in 49 countries. The company provides aircraft to well-established carriers such as British Airways, Air Canada, LOT, Azul, Lufthansa, Alitalia, Garuda, Flybe, Aeroméxico and airBaltic as well as major regional carriers including Air Nostrum and Widerøe. NAC’s current fleet consists of 468 owned and managed aircraft. NAC is the largest owner and lessor of both ATR and Bombardier aircraft in the world.
In the financial year ending 30 June 2018, NAC generated a business performance result of USD 160 million.

For further information please visit www.nac.dk

About EQT
EQT is a leading  investment firm with approximately EUR 50 billion in raised capital across 27 funds. EQT funds have portfolio companies in Europe, Asia and the US with total sales of more than EUR 19 billion and approximately 110,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

For further information please visit www.eqtpartners.com

About GIC
GIC is a leading global investment firm established in 1981 to manage Singapore’s foreign reserves. A disciplined long-term value investor, GIC is uniquely positioned for investments across a wide range of asset classes, including equities, fixed income, private equity, real estate and infrastructure. In private equity, GIC invests through funds as well as directly in companies, partnering with its fund managers and management teams to help world class businesses achieve their objectives. GIC has investments in over 40 countries and has been investing in emerging markets for more than two decades. Headquartered in Singapore, GIC employs over 1,500 people across 10 offices in key financial cities worldwide.

For more information about GIC, please visit www.gic.com.sg

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