(Reuters) – U.S. private equity firm Carlyle Group said on Thursday it will invest $600 million in a joint venture with RPK Capital Management to buy commercial aviation assets, including aircraft and engines, and related securities and loans.
Carlyle and Chicago-based RPK Capital, which specialises in aviation investments, have set up a new company will purchase over $1 billion of aviation assets around the world, Carlyle said in a statement obtained by Reuters.
“There is a significant need for capital and expertise in the commercial aviation investment sector at this time,” RPK co-founder James Raff said.
The statement said the partnership “will provide fleet solutions and liquidity to airlines, lessors, financial institutions and other non-traditional owners of aviation assets worldwide.”
RPK, which will manage the portfolio and also invest $20 million, intends to buy bank debt secured against assets such as jets and spare parts and also various aircraft and engines that will then be leased out to airlines, the Financial Times said on its website.
Since 1987, Carlyle Group has invested $59.6 billion of equity in 952 transactions for a total purchase price of about $233 billion, according to the company. (Reporting by Shrutika Verma in Bangalore; Editing by Rupert Winchester)