Partners Group, acting on behalf of its clients, has invested USD 250 million as the sole lead investor in a continuation vehicle established by Avenue Capital Group to acquire its global commercial aviation leasing portfolio. The transaction, valued at approximately USD 360 million, is one of the largest transportation deals executed by Partners Group's infrastructure secondaries strategy to date. Avenue Capital Group's aviation team will continue to manage the assets.
The portfolio comprises 69 mid-life aviation projects, including narrowbody aircraft, widebody aircraft, and regional jets. The lessee base is diversified across 30 airlines spanning Asia, Western Europe, and North America. According to the announcement, the majority of cash flows from the portfolio are contracted, providing stable and predictable income. The portfolio is also structured to maximize asset values at the end of contracts through re-leases, aircraft sales, or disassembly.
The commercial aviation leasing market benefits from several tailwinds, including a structural undersupply of new aircraft due to production delays. This is shifting industry dependence to mid-life aircraft and spare parts. Additionally, aircraft engines are increasingly being used for alternative industrial uses, underpinning demand for legacy engines, supporting residual values, and tightening broader supply dynamics.
Jeremy Semble, Head of Infrastructure Partnership Investments Americas at Partners Group, stated: "Aircraft leasing is a growing space within the infrastructure asset class. The Portfolio is asset-heavy with contracted cash flows and high barriers to entry, reflecting significant capex requirements and maintenance needs. This makes it a great fit for our infrastructure secondaries strategy, where we look to provide investors with diversified exposure to sectors with resilient demand and strong growth potential." He added that Partners Group is pleased to partner again with Avenue Capital Group.
Marc Lasry, Co-Founder and CEO of Avenue Capital Group, commented: "This new continuation vehicle provided our existing limited partners with a compelling liquidity option and has allowed us to once again partner with Partners Group via a continuation vehicle, providing them with exposure to our strong portfolio of aviation projects that we have assembled over the past decade." He noted that the Avenue Kite Continuation Fund LP's aviation team, led by Shawn Foley, looks forward to realizing value in a favorable market environment.
Partners Group's Infrastructure Partnership Investments business focuses on LP-led portfolios, GP-led investments, and complex situations globally. The firm has completed over 70 infrastructure secondaries transactions since 2006 and is currently raising its latest infrastructure secondaries program, including a closed-end fund and mandates.
Partners Group was advised by Ropes & Gray on the transaction, while Avenue Capital Group was advised by Latham & Watkins and Perella Weinberg Partners. For more information, visit Partners Group or NewMediaWire.
The investment underscores the growing appeal of aviation leasing as an infrastructure-like asset class, offering contracted cash flows and resilience amid structural supply constraints. For investors, this provides exposure to a sector with strong demand drivers and potential for stable returns.
