Aircraft portfolios of up to $500 million in value are being marketed directly to financial investors, to test the market, FlightGlobal understands.
The investors being targeted have often already invested in aviation via either ABS deals or E notes.
Typically, portfolios are offered to all potentially interested buyers on the seller's shortlist, including lessors. However, a recent surge of interest from mainly US-based buy-side capital-markets investors in aviation assets has prompted some aircraft sellers to pitch first to investors.
US insurers and pension funds are actively looking to allocate a portion of their funds into aviation as an asset class, mainly as part of their diversification strategies, FlightGlobal understands.
The resurgent interest of US-based institutional investors in aviation as an asset may be linked to recalibration of their return expectations. Previously, returns of 15% were expected, but it appears that some investors are now willing to accept 5-6%.
Source: Cirium Dashboard
