Private equity firm The Carlyle Group and RPK Capital Management, an aircraft leasing and investment company, have formed a partnership to invest USD600m in equity in a spectrum of commercial aviation assets, including aircraft, engines and related securities and loans.
With leverage, the new partnership, RPK Capital Partners, is expected to purchase well over USD1bn in aviation assets.
The equity comes from Carlyle Partners V, Carlyle Strategic Partners II, RPK principals and other investors.
Carlyle managing director Adam Palmer says: “This new partnership marries Carlyle’s global footprint and decades of aerospace experience with RPK’s proven ability to create value in complex situations in the commercial aircraft sector at this opportune time. RPK’s responsive, creative and disciplined approach has enabled them to generate consistently superior returns.”
RPK co-founder and managing partner James Raff adds: “We are excited to partner with The Carlyle Group and leverage their global reach and relationships in this sector. There is a significant need for capital and expertise in the commercial aviation investment sector at this time. This new partnership will provide creative fleet solutions and liquidity to airlines, lessors, financial institutions and other non-traditional owners of aviation assets worldwide.”
RPK is an aircraft leasing and investment company founded in 2004 with headquarters in Chicago and offices in New York, San Francisco and London. The senior management team comprises four veterans of the aviation industry: Raff, Paul Redman, Robert Gates and Christopher Chaput.
Concurrent with the closing of this transaction, Chaput, who will be based in RPK’s New York office, joins RPK Capital Partners from The Seabury Group where he was a partner and head of structured finance.
Carlyle was advised by Evercore Partners and Debevoise & Plimpton. RPK was advised by The Seabury Group and K&L Gates.