Operating lessor WNG Capital has disclosed the closing of a $345 million fund which will be used to invest in "late-life" narrowbodies.
WNG Aircraft Opportunities Fund II, for which a fund-raising target of $300 million had been set, will acquire approximately 40-60 single-aisle aircraft – a mix of Airbus and Boeing jets, with ages ranging "from 15 to 20-plus years" and remaining lease terms of 12 to 48 months.
Launched in 2009, WNG has already built a portfolio of 59 mid- to end-of-life aircraft, the value of which it puts in excess of $850 million.
Fund II is in the process of closing its first investment and "has proposals outstanding for a number of suitable aircraft", says WNG.
Michael Gangemi, a managing member at the lessor, states: "Many lessors are focused on acquiring younger and mid-life aircraft, but WNG sees continued opportunities to invest in older aircraft on shorter leases.
"We expect Fund II's capital will be complementary to other sources that airlines and lessors may have."
Al Nigro, another managing member, describes the asset class as "narrow", adding: "Older aircraft on short leases require deep technical knowledge, detailed contracts experience and risk-management skills."
With offices in Dallas and Dublin, WNG employs a staff of 19 professionals.
Source: Cirium Dashboard