Global investment firm KKR has increased its ownership stake in commercial aviation leasing and financing firm Altavair.
KKR has agreed to increase its ownership in Altavair and its sister company, AV AirFinance.
The financial terms and the size of the stake were not disclosed.
Since establishing their strategic partnership in 2018, KKR-managed funds have committed over $5bn to aircraft leasing and lending activities. The firm expanded into directly originated commercial aircraft loans in June 2021 through the launch of lending platform AV AirFinance.
As part of the latest investment, Matthew Hoesley, chief commercial officer, will expand his remit to become president and chief commercial officer of Altavair, and Andrew Carpenter, head of tax and accounting, will become chief financial officer of Altavair.
Daniel Pietrzak, partner and global head of private credit at KKR, said: “We are pleased to build on our long-standing relationship with Altavair and reinforce our commitment to the aviation sector, which is an important area of opportunity for our asset-based finance strategy.
“We look forward to supporting Altavair further with our long-term capital as it continues to meet the evolving fleet needs of airlines and operators around the world.”
Brandon Freiman, partner and head of North American infrastructure at KKR, said: “Commercial aircraft assets have proved to be highly resilient across market cycles, supported by long-term demand for global air travel and strong contractual protections.
“Altavair is well positioned to execute at scale across the aviation ecosystem, and we are pleased to expand our partnership as the platform continues to grow.”
Steve Rimmer, Altavair CEO, said: “I am delighted to deepen our strategic partnership with KKR, and we appreciate the continued trust that this investment demonstrates.
“Our working relationship has developed and matured over the last seven years, and KKR’s skillsets, expertise and market knowledge have been integral to helping grow Altavair into the successful platform that it is today.”
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