LetterOne Treasury Services (L1 Treasury) and Airborne Capital have joined forces to set up a $250m (€211.9m) venture to invest in a portfolio of aircraft.
The partners have launched AltitudeOne Aviation to invest in a portfolio of leased in-production narrow body and wide body commercial aircraft.
The $250m committed by Luxembourg-based vehicle L1 Treasury and Airborne Capital will be supplemented with bank financing.
Airborne Capital will be the asset manager and lease servicer for AltitudeOne Aviation.
Nitin Bhandari, the head of direct investments for L1 Treasury, said: “We are delighted to be working with the Airborne Capital team on this important investment and we look forward to playing an increasing role in the aviation funding markets.
“With the financial support and expertise that we can provide combined with the industry expertise of the Airborne Capital team, we believe that this business can grow rapidly to play a significant role in the market segments it is targeting.”
Ramki Sundaram, the CEO of Airborne Capital, said: “We are very excited to launch this venture together with L1 Treasury. The team at Airborne Capital has rich experience in setting up and managing innovative investment and fund platforms for investors.
“This latest initiative fits perfectly within our strategy of providing a bridge between sources of capital and businesses requiring aviation financing.”
Airborne Capital, which was launched in November last year, plans to grow the business to have aircraft asset under management of over $5bn within the first 5 years of being set up.