Fledgling business aircraft financing company Global Jet Capital is beefing up its portfolio of high-end jets with the acquisition of GE Capital Corporate Aircraft’s lease and loan business in the Americas.
The deal, which represents around $2.5 billion of net assets, is scheduled for completion by the end of the year.
“We are investing heavily in expanding the business both organically and through strategic acquisitions, such as this one with GE,” says Global Jet Capital’s executive director, Shawn Vick.
The Boca Raton, Florida-based company was launched a year ago by global investment firms GSO Capital Partners, the Carlyle Group and AE Industrial Partners, with the aim of providing finance and leasing options to owners of large-cabin and long-range business jets.
GE Capital’s portfolio of high-end corporate aircraft – which are priced within the $25-$75 million range – will help to strengthen its foothold in this small, yet lucrative arm of the finance industry.
This niche sector is driven by wealthy individuals and corporations, which are turning to competitive financing solutions to fund their aircraft purchases rather than using their cash resources, says Vick, a business aircraft industry veteran and former senior executive with Gulfstream and Hawker Beechcraft.
Vick adds that GE Capital’s "remarkable portfolio of corporate aviation assets, and this investment, underlines our confidence in the long-term growth prospects of the large-cabin, long-range private jet market."