Asset-backed investments with attractive returns – investing in aircraft finance

Ongoing high demand for capital in the aircraft finance market is increasingly attracting the interest of institutional investors seeking asset-backed investments with attractive returns. Prime Capital offers the right portfolio- and access solutions for this type of investment for institutional investors.

An investment in aircraft loans is, from an economic viewpoint, similar to investing in amortizing bonds that pay an attractive interest rate and are asset-backed. In the case of aircraft financing, the collateral is deployed globally and stable in value. Prime Capital already manages several bespoke fund- and securitisation vehicles as well as multi-investor products, which invest in these lucrative investment opportunities in the aircraft finance market.

The benefits of aircraft-backed debt

  • Good growth prospects: Long-term growth in passenger numbers translates into strong demand for aircraft and the corresponding finance
  • Rising demand: Growing demand for aircrafts is predicted as a result of continued urbanization; this will generate further growth in the leasing market
  • A highly standardized asset and controlled development of capacities: More than 80% of all aircrafts in commercial use are delivered by Boeing and Airbus
  • Standardized financing structures: within a secure, international legal Framework
  • Wide range of investment strategies: The aircraft finance market offers enough opportunities for a broad return/risk profile; this enables a range of investment strategies to be implemented on the basis of clearly defined investment criteria (defining e.g. credit quality of the transactions and LTV)
  • Risk diversification: Low correlation with other asset classes. The portfolio is globally diversified due to worldwide commercial use of common aircrafts by local airlines

Your benefits of investing in aviation financing with Prime Capital

  • Many years of experience in aircraft financing with more than 170 financed aircraft and more than USD 1 billion AuM in this asset class
  • Investment management with profound expertise in credit analysis and the aircraft market
  • Early investment of capital commitments – avoidance of dry powder for several years. Investors can invest directly in existing Prime Capital products and thus participate in the aircraft financing market from day one
  • In-house structuring expertise for the implementation of tailor-made solutions for institutional client
  • Preparation of customer-specific risk and regulatory reporting. This also includes Solvency II reporting
  • Proprietary models for credit quality analysis and for the preparation of internal ratings. Recognised external ratings can also be issued on request
  • Global network in the aviation financing market