Global Jet Capital, a financing solutions provider for private jets, has agreed to buy GE Capital’s aircraft lease and loan portfolio reportedly valued at about $2.5 million. Deutsche Bank Securities Inc, BofA Merrill Lynch and Citi advised Global Jet Capital on the deal. Global Jet Capital, is backed by GSO Capital Partners, The Carlyle Group and AE Industrial Partners.
October 5, 2015 – Boca Raton, FL – Global Jet Capital, a provider of financing solutions for large-cabin, long-range private jets, has agreed to purchase the aircraft lease and loan portfolio of GE Capital Corporate Aircraft in the Americas representing approximately $2.5 billion of net assets.
Shawn Vick, Executive Director of Global Jet Capital said, “We are investing heavily in growing the business both organically and through strategic acquisitions such as this one with GE. This is a prime example of our industry expertise and investment capital coming together to evaluate and identify an opportunity to expand the business in a disciplined, carefully measured way.”
He added, “This is a remarkable portfolio of corporate aviation assets, and this investment underlines our confidence in the long-term growth prospects of the large cabin, long range private jet market. The price point of these aircraft range between $25 and $75 million on average, and corporate users and high net worth individuals will seek competitive financing solutions rather than allocate their own cash resources which are better invested in their own businesses.”
In building the Corporate Aircraft portfolio, GE Capital has adhered to the most comprehensive underwriting and asset evaluation practices as well as industry-leading documentation and collateral securing processes.
“We are pleased to sell our Corporate Aircraft financing portfolio to Global Jet Capital, a buyer that is fully committed to investing and growing the business,” said Keith Sherin, GE Capital Chairman and CEO. “We know our customers will benefit from the combined strength and expertise of the Global Jet Capital team and will continue to receive the high level of service they have come to expect from us,” he added.
Global Jet Capital, which was launched last year, is capitalized by three global investment firms – GSO Capital Partners, a Blackstone company in partnership with Franklin Square Capital Partners*; The Carlyle Group; and AE Industrial Partners.
The company’s current management team and executive committee is composed of leaders from business jet manufacturers, maintenance and service providers and leading financial institutions who have served the private aircraft industry for a combined 200-plus years and have completed over 3,500 aircraft transactions. As part of this transaction, the GE Capital Corporate Aircraft team will join the Global Jet Capital organization.
Global Jet Capital was advised by Deutsche Bank Securities Inc., BofA Merrill Lynch and Citi together with Latham & Watkins LLP, Clifford Chance US LLP and Kirkland & Ellis LLP as legal advisors. Closing is contingent upon the completion of customary closing conditions and is expected to occur in stages over the next several months.
Global Jet Capital
Global Jet Capital is a financial services company providing financing solutions for the private aircraft market. The business is capitalized by world-class private investors with expertise in the global aviation industry: GSO Capital Partners, a Blackstone company, in partnership with Franklin Square Capital Partners, The Carlyle Group and AE Industrial Partners. We offer a management team with expertise in financing, asset management, acquisition, marketing, lease administration and product support that understands the intricacies of the private aircraft market. Global Jet Capital serves virtually all jurisdictions and has the capital and expertise to meet the needs of the global private aircraft market, with flexibility and speed. www.globaljetcapital.com
GSO Capital Partners and Franklin Square Capital Partners
GSO Capital Partners, with approximately $81 billion in assets under management, is the credit platform of The Blackstone Group, a leading global institutional alternative asset manager, with assets under management of approximately $330 billion**. Franklin Square Capital Partners is a leading manager of alternative investment funds designed to enhance investors’ portfolios by providing access to asset classes, strategies and asset managers that typically have been available to only the largest institutional investors. Franklin Square manages over $16.8 billion** in assets. Franklin Square’s funds are currently sub-advised by GSO or its affiliates. www.blackstone.com/gso
* Investment to be made by funds advised or sub-advised by GSO Capital Partners and Franklin Square Capital Partners or their respective affiliates, as applicable.
** As of June 30, 2015
The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $193 billion of assets under management across 128 funds and 159 fund of funds vehicles as of June 30, 2015. Carlyle’s purpose is to invest wisely and create value on behalf of its investors. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries including aerospace, defense and government services; consumer and retail; energy; financial services; healthcare; industrial; real estate; technology and business services; telecommunications; and media and transportation. The Carlyle Group employs more than 1,700 people in 35 offices across six continents.
AE Industrial Partners
AE Industrial Partners is a private equity investment company founded in 1998, by David Rowe and his late father, aviation pioneer Brian Rowe, to make direct investments in aerospace, power generation and specialty industrial companies. Today AE Industrial is led by 11 partners with each having an average of over 30 years of relevant operating and direct investment experience. AE Industrial is focused on investing in precision component manufacturing, distribution, MRO (maintenance, repair and overhaul) and industrial service-based businesses that are strategically important to their market places. AE Industrial has invested in over 30 companies including: Aviall, Dynamic Precision Group, Grand Prairie Accessory Services, Landmark Aviation, Kellstrom Materials and Belcan Corporation.