Warburg Pincus has formed Aquila Air Capital, a specialty finance platform focused on commercial aerospace. No financial terms were disclosed for the transaction that was done in partnership with aerospace industry veteran Al Wood and Kepler Hill Capital.
NEW YORK, April 19, 2021 /PRNewswire/ — Warburg Pincus, a leading global private equity firm focused on growth investing, today announced the formation of Aquila Air Capital, a specialty finance platform focused on commercial aerospace, in partnership with aerospace industry veteran Al Wood and investment firm Kepler Hill Capital.
Aquila Air Capital will have a broad mandate to purchase, finance, and lease, aircraft, engines and other aviation equipment. The Company’s vision is to become a trusted partner to all players in the value chain, from buyers and sellers of assets to operators in need of creative and timely solutions for their critical business needs.
Al Wood joins Warburg Pincus as an executive-in-residence to identify and evaluate investment opportunities related to the broader aerospace and defense industry and to help build Aquila Air Capital. Al Wood most recently served as CFO of Boeing Commercial Services, a $9 billion business unit where he focused on increasing return on invested capital, streamlining the product and services portfolio, and reducing working capital requirements. He previously served as Head of M&A, Boeing Global Services and was the Chief Commercial Officer at AeroTurbine Inc, part of AerCap Inc., the largest commercial aircraft lessor.
“There is a significant market opportunity to build a leading specialty finance franchise in commercial aerospace. By pairing our expertise in special situations and specialty finance with our deep history in aerospace, Aquila Air Capital is well-positioned to build a scaled and diversified platform,” said Eric Friedman, Managing Director, Warburg Pincus. “We have a long-standing history with Al and Kepler Hill Capital, who both have strong records of creating value in the sector. As a long-term investor in aerospace businesses, we are excited about our partnership to create a new market-leader in aerospace specialty financing,” added Dan Zamlong, Managing Director, Warburg Pincus.
“Aquila Air Capital is looking to capitalize on the current dislocation in the aerospace sector by leveraging the expertise and global resources of Warburg Pincus,” said Keith Whittaker, Managing Partner of Kepler Hill Capital and Senior Advisor to Warburg Pincus. “The company uniquely combines the expertise that customers value including the acquisition of aircraft and engines, with dedicated technical, sales and leasing support.”
“We are in a unique environment where the aerospace industry is experiencing an extended recovery outlook and high levels of cash burn, leaving the industry liquidity and capital constrained. This market outlook provides a strong opportunity to build a leading specialty finance franchise. With the support of Warburg Pincus, a leading investor in the aerospace and defense industry as well as the specialty finance sector, we believe Aquila Air Capital will become an important partner for passenger and cargo operators and the MRO community supporting their aircraft,” said Al Wood.
Warburg Pincus is one of the most active and successful private equity investors in aerospace and defense. The firm has invested over $3 billion in several aerospace & defense platforms covering multiple areas of the value chain including Accelya, Camp Systems, CPP, Extant Aerospace, Inmarsat, Quest Global Services, TransDigm, and Wencor Group. As a leader in the financial services sector, the firm has invested over $11 billion across the full spectrum of the financial services landscape, including a significant focus on specialty finance over the last decade. Notable specialty finance investments include Ascentium Capital, AU Financiers, Cango, LendingPoint, Mariner Finance, Max, Mosaic, Santander Consumer USA, and Triton.
About Aquila Air Capital
Aquila Air Capital is a specialty finance platform focused on providing asset financing in partnership with industry participants as well as purchasing and leasing aircraft, engines and other aviation equipment. Led by a management team with more than 25 years of experience in the aerospace industry, Aquila Air Capital is a trusted partner to all players in the value chain, from buyers and sellers of assets to operators in need of creative and timely solutions for their critical business needs. Aquila Air Capital is backed by Warburg Pincus, a leading global private equity firm focused on growth investing and Kepler Hill Capital, a private equity firm focused on special situations and whose principals have invested in and built three prior aviation platforms. For more information, please visit www.aquilaaircapital.com.
About Warburg Pincus
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $60 billion in private equity assets under management. The firm’s active portfolio of more than 200 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 19 private equity funds, which have invested more than $90 billion in over 930 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more information please visit www.warburgpincus.com.