Global alternative investment firm Castlelake Capital is seeking to raise $2bn (€1.8bn) to invest in opportunities across the aviation sector, according to a potential investor.

Minnesota State Board of Investment (SBI) disclosed in its meeting document that it expects to make a $100m commitment to the Castlelake Aviation V Stable Yield fund.

Minnesota SBI’s proposed investment is expected to be made through the pension fund’s private credit portfolio. The final commitment amount is not expected to exceed 20% of the total size of the Castlelakev fund.

Minnesota SBI said Castlelake’s latest aviation fund is expected to target debt, sale and leaseback transactions, as well as other leasing opportunities.

In January last year, Castlelake announced it had raised $1.6bn at the close of Castlelake Aviation IV Stable Yield and related fund Castlelake Aviation IV Stable Yield Opportunities.

Castlelake funds have invested more than $17bn in aircraft and aviation assets, acquiring or managing more than 650 aircraft and 1,000 engines. Castlelake is also one of the largest issuers of aircraft asset-backed securities in the market, having raised more than $6bn of aircraft-secured debt since 2014.

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