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Partners Group's $250M Investment in Avenue Capital's Aviation Portfolio

Partners Group invested USD 250 million as lead investor in Avenue Capital Group's continuation vehicle for a portfolio of 69 commercial aviation projects. The deal highlights growing infrastructure secondaries interest in aircraft leasing, supported by structural aircraft undersupply.
Partners Group's $250M Investment in Avenue Capital's Aviation Portfolio

Partners Group has invested USD 250 million as the sole lead investor in a continuation vehicle established by Avenue Capital Group to acquire a portfolio of 69 commercial aviation projects.

It is one of the largest transportation transactions by Partners Group's infrastructure secondaries strategy to date, and it reflects growing interest in aircraft leasing as an infrastructure asset class with resilient demand and strong growth potential.

Partners Group (acting on behalf of its clients) and Avenue Capital Group. Partners Group is the investor, and Avenue Capital Group's aviation team will continue managing the portfolio.

The portfolio includes 69 mid-life aviation projects across narrowbody aircraft, widebody aircraft, and regional jets, with a diversified lessee base of 30 airlines across Asia, Western Europe, and North America.

The majority of cash flows are contracted, providing stable and predictable income. Additionally, the portfolio is structured to maximize asset values at contract end via re-leases, aircraft sales, or disassembly.

Structural undersupply of new aircraft due to production delays shifts demand to mid-life aircraft and spare parts. Also, aircraft engines are increasingly used for industrial purposes, supporting residual values and tightening supply dynamics.

The continuation vehicle is approximately USD 360 million, with Partners Group as the sole lead investor.

Partners Group has completed over 70 infrastructure secondaries transactions since 2006, and this investment is part of its Infrastructure Partnership Investments business.

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