KKR announced it has made a $1.4bn (£1bn) equity commitment in partnership with aviation asset manager Altavair, building on two prior aircraft leasing portfolios.
The equity investment primarily comes from KKR’s infrastructure and asset-based finance strategies, with the firm deploying more than $8bn in aircraft leasing and lending transactions since forming a strategic partnership with Altavair in 2018.
Since then, the partnership has acquired 188 commercial aircraft and engine assets through a variety of transactions, including lessor trades, airline-direct new and used sale leasebacks, passenger-to-freight conversions, and structured transactions.
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“Nearly a decade of strategic partnership with Altavair has deepened our conviction in the attractiveness of aircraft leasing, which we believe is poised to grow even further as demand for air travel continues to rise and airlines seek more liquidity and fleet flexibility,” said Brandon Freiman, partner and head of north American infrastructure at KKR.
Within the aircraft space, KKR has also invested in AV AirFinance, Atlantic Aviation, KKR DVB Aviation Capital, K2 Aviation, deploying more than $12bn in the aviation sector since 2015.
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“The success of our strategic partnership is a testament to the power of combining our patient, long-term capital with Altavair’s deep industry expertise and differentiated sourcing capabilities,” said Daniel Pietrzak, partner and global head of private credit at KKR.
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