M&G Investments has acquired an undisclosed stake in Sky Leasing and committed $300m (€271m) capital to the aircraft leasing asset manager’s first fund.
Sky Leasing said it has closed its first aircraft leasing fund with the equity investment from M&G.
As servicer to the fund, SKY Leasing said it will focus on providing fleet solutions for its longstanding airline customers through the acquisition of current-generation and next-generation Boeing and Airbus aircraft.
The plan is to build a portfolio with an initial target of $1bn of Boeing and Airbus aircraft, the manager said.
Sky Leasing said M&G is also buying a stake in the company, to support the growth of its asset management platform including the launch of its Irish servicing operation and continued operations in San Francisco, California.
SKY Leasing CEO Austin Wiley, said: “We are excited to launch this first aircraft fund with M&G, who supports our vision for the growing opportunity to provide capital and aircraft fleet solutions to our global airline customer network, in addition to providing liquidity in the aircraft trading market.
“We look forward to building a best-in-class portfolio with an initial target of $1bn of Boeing and Airbus aircraft.”
Alex Seddon, co-head of private credit, M&G Investments, said: “The management team’s expertise will enable our clients to access an attractive asset class that produces long term cash flows and which is underpinned by strong fundamentals.
“This strategic partnership builds on our experience of investing in aircraft leasing through the asset-backed securities and private debt markets, and is an example of how we can structure innovative investment solutions to benefit our clients.”