Apollo Aviation is confident the introduction of the Boeing Max will not impact the values of its current portfolio.
Apollo came to the market in the first quarter of this year with its second aircraft fund, Sciens Avaition Special Opportunities Investment Fund (SASOF II), which will invest in Airbus and Boeing used products until the first quarter of 2015.
The $595 million fund has seven 737 Next Generation (NG) aircraft along with two Airbus A320s and two A330s.
"The value curve of the NG aircraft is not much relevant to this fund as the 737 Max products will not hit the market by the end the fund closes," says Robert Korn president of Apollo on the eve of the Paris air show.
"The fund invests in more than 10-year-old aircraft and, by the time the Max product starts delivering, our NGs will be between 15- and 17- years of age."
He says Apollo will follow the "philosophy implemented" in the previous fund, by acquiring part-out equipment as well as aircraft on lease, as part of sale and leaseback deals as well as through lessor's purchases.
The fund will invest in a total of 25 aircraft during the two-year period to 2015.