The fund invests in a diversified portfolio of aircraft on lease to a global customer base and aviation debt. It seeks to generate returns mainly from contracted cashflows. This provides downside protection for investors as we are less reliant on aircraft residual values.
The outlook for the asset class has improved due to two key factors. Air travel demand has rebounded globally to pre-pandemic levels. Current disruptions in the global supply chain from the two main manufacturers have created a backlog that is keeping aircraft values stable.
The Fund is managed by one of the most experienced teams in the industry with a long track record managing aviation assets through the investment cycle. The team focuses on the latest technology and newer aircraft, working with select high-credit quality airlines and lessor counterparties. The team has written and invested c.US$ 1 billion in transactions across leasing, debt, and co-investments since joining Muzinich & Co. in 2020.
“Aviation finance is a cash generative asset class with infrastructure-type characteristics, and low correlation to traditional asset classes. We believe the next 12-24 months can provide investors with capital to deploy with an interesting entry point into aircraft investing.”Rafael Ximenez de Embún, Country Manager, Iberia & Latam at Muzinich & Co.