Partners Group, a global private markets firm, 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, one of the largest transportation deals by Partners Group's infrastructure secondaries strategy, underscores the increasing institutional interest in aircraft leasing as an infrastructure investment.
The portfolio comprises 69 mid-life aviation projects, including narrowbody aircraft, widebody aircraft, and regional jets, assembled over the past decade. The assets are leased to 30 airlines across Asia, Western Europe, and North America, providing diversification and stable, contracted cash flows. The structure aims to maximize asset values through re-leases, sales, or disassembly at contract end.
The commercial aviation leasing market benefits from structural tailwinds, including production delays that limit new aircraft supply, shifting demand to mid-life aircraft and spare parts. Additionally, aircraft engines are increasingly repurposed for industrial uses, supporting residual values and tightening supply dynamics. These factors make the portfolio attractive for infrastructure investors seeking resilient demand and growth potential.
Jeremy Semble, Head of Infrastructure Partnership Investments Americas at Partners Group, noted: "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." He added that the firm is pleased to partner again with Avenue Capital Group, which has positioned the portfolio well in the current market.
Marc Lasry, Co-Founder and CEO of Avenue Capital Group, stated: "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." He highlighted that the Avenue Kite Continuation Fund LP is well-positioned 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. Partners Group was advised by Ropes & Gray, while Avenue Capital Group was advised by Latham & Watkins and Perella Weinberg Partners.
For more information about Partners Group, visit their website. For Avenue Capital Group, see the original release on NewMediaWire.
