PE and Hedge Funds Looking to Business Aviation Finance to Reduce Exposure to Stock Market Corrections – AviationPros.com

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Global Jet Capital, a provider of financing solutions for corporate aircraft, believes more private equity firms and hedge funds are considering entering the business aviation finance sector to diversify their portfolios and reduce their exposure to equities and bonds and any potential market correction here.

The company also believes that the price of mid to heavy private jets is beginning to stabilize following several years of falling valuations, and this is also making business aviation finance more appealing to private equity firms and hedge funds.

Global Jet Capital is capitalized by three global investment firms – GSO Capital Partners, a Blackstone company in partnership with Franklin Square Capital Partners*; The Carlyle Group; and AE Industrial Partners. In January 2016, Global Jet Capital completed the purchase of GE’s corporate aircraft lease and loan book in the Americas.

Dave Labrozzi, Chief Operating Officer at Global Jet Capital said: “Several key stock market commentators are predicting a stock market correction, and there is growing volatility in the markets.  Private equity firms and asset managers are increasingly looking for ways to invest their funds in a way that offers low correlation with equities and bonds but which also provides a strong income.  Business aviation finance offers exactly this, and you have the added security of having the loan secured against a valuable asset.”

Global Jet Capital currently has $2.5 billion in assets under management.

Global Jet Capital

With $2.5 billion in assets under management, Global Jet Capital provides financing solutions for the private aircraft market. The company is capitalized by world-class private investors with expertise in the global aviation industry: GSO Capital Partners, a Blackstone company, in partnership with FS Investments, The Carlyle Group and AE Industrial Partners. The Global Jet Capital management team has served the private aircraft industry for a combined 200-plus years and has completed over 3,500 aircraft transactions.  The company has the expertise, financial strength, industry relationships and infrastructure necessary to offer a variety of flexible financing solutions at the speed the market requires.www.globaljetcapital.com

GSO Capital Partners and FS Investments

GSO Capital Partners, with approximately $89 billion in assets under management, is the credit platform of The Blackstone Group, a leading global institutional alternative asset manager, with assets under management of over $360 billion*. FS Investments, formerly Franklin Square Capital Partners, is a leading asset manager that designs alternative investments, including six funds sub-advised by GSO or its affiliates representing over $18 billion in assets under management as of June 30, 2016. www.blackstone.com/gso 

* As of September 30, 2016

The Carlyle Group

The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $176 billion of assets under management across 128 funds and 170 fund of funds vehicles as of June 30, 2016. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,650 people in 35 offices across six continents. www.carlyle.com

AE Industrial Partners

AE Industrial Partners is a private equity investment company founded in 1998, by David Rowe and his late father, aviation pioneer Brian Rowe, to make direct investments in aerospace, power generation and specialty industrial companies. Today AE Industrialis led by 11 partners with each having an average of over 30 years of relevant operating and direct investment experience.  AE Industrial is focused on investing in precision component manufacturing, distribution, MRO (maintenance, repair and overhaul) and industrial service-based businesses that are strategically important to their market places. AE Industrial has invested in over 30 companies including: Aviall, Dynamic Precision Group, Grand Prairie Accessory Services, Moeller Aerospace, Landmark Aviation, Kellstrom Materials and Belcan Corporation. www.aeroequity.com

 

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