Partners Group Invests $250 Million in Avenue Capital's Aviation Leasing Portfolio

Partners Group, a global private markets firm, has invested USD 250 million as the sole lead investor in a continuation vehicle established by Avenue Capital Group to acquire a portfolio of 69 commercial aviation projects. The transaction, one of the largest in Partners Group's infrastructure secondaries strategy, underscores the increasing relevance of aircraft leasing as an infrastructure asset class.

The portfolio, assembled over the past decade by Avenue Capital Group, includes mid-life narrowbody aircraft, widebody aircraft, and regional jets. It is diversified across 30 airlines in Asia, Western Europe, and North America, with most cash flows contracted, offering stable and predictable income. The portfolio is structured to maximize asset values at contract end through re-leases, sales, or disassembly.

Jeremy Semble, Head of Infrastructure Partnership Investments Americas at Partners Group, noted that aircraft leasing aligns well with the infrastructure secondaries strategy due to its asset-heavy nature, contracted cash flows, and high barriers to entry from significant capital and maintenance requirements. The investment also reflects confidence in the commercial aviation leasing market, which benefits from structural undersupply of new aircraft from production delays and increasing demand for mid-life aircraft and spare parts. Additionally, aircraft engines are finding alternative industrial uses, supporting residual values and tightening supply dynamics.

Marc Lasry, Co-Founder and CEO of Avenue Capital Group, highlighted that the continuation vehicle provided liquidity options for existing limited partners while allowing Avenue to partner with Partners Group again. The Avenue Kite Continuation Fund LP, managed by Avenue's aviation team led by Shawn Foley, aims to realize value in a favorable market environment.

Partners Group's Infrastructure Partnership Investments business focuses on LP-led and GP-led transactions globally. The firm has completed over 70 infrastructure secondaries transactions since 2006 and is currently raising its latest program, including a closed-end fund and mandates. Partners Group was advised by Ropes & Gray, while Avenue Capital Group was advised by Latham & Watkins and Perella Weinberg Partners.

The deal highlights the growing intersection of aviation leasing and infrastructure investment, as investors seek resilient sectors with strong growth potential. For more information, visit Partners Group or Avenue Capital Group.