Muzinich & Co has announced the seeding of its Aviation Senior Secured Strategy, at USD300 million. The Senior Secured Strategy has attracted the interest of European institutional investors who have provided the capital and has an overall target capacity of USD1.5 billion.
The Senior Secured Strategy seeks compelling risk-adjusted returns and attractive income by looking to provide secured aircraft debt financing to global airlines and leasing companies. Muzinich & Co will act as sourcer and portfolio advisor.
Brian Lau, Portfolio Manager, says: “We are pleased institutional investors have identified Muzinich as their investment partner in aviation finance because of our credit-focused investment approach and strong in-house technical expertise. We believe in the potential long-term, risk-adjusted returns available in aviation secured debt investments. For investors who are either new entrants or underweight the asset class, the pandemic has created an attractive entry point with the potential for increased returns on high quality airlines and assets.”
Muzinich is a privately-owned, institutionally focused investment firm specializing in public and private corporate credit. Muzinich offers a broad range of corporate credit funds across both developed and emerging markets and manages over USD41.3 billion (as of 30 April 2021) in fixed income credit assets. Muzinich launched its aviation finance business in February 2020 and has become an active player in providing debt as well as leasing solutions to airlines globally.
Launched in 2014, Muzinich & Co’s Private Debt Platform is currently comprised of 37 investment professionals in 12 locations in Europe, the US and Asia. The firm’s platform has USD1.9bn in committed capital and over USD1.1bn in invested capital and focuses on providing flexible financing solutions to small and medium-sized enterprises.
