Castlelake, a global alternative investment firm specialising in asset-based investments, is to sell a $5bn portfolio of 118 aircraft – including narrowbody, widebody, and regional jets – to aviation finance company Avolon.
The transaction is expected to close in the first quarter of 2025.
The portfolio is held by Castlelake Aviation Limited (CA Ltd), which was established in 2021 to finance modern, fuel-efficient aircraft, and has rapidly grown to hold more than $5vbn in assets. The sale aligns with Castlelake’s broader strategy of delivering strong returns to its investors while providing Avolon with a fleet of high-demand aircraft.
In a press statement, Joe McConnell, Partner and Deputy Co-Chief Investment Officer at Castlelake, described the deal as a “great outcome for all involved parties”.
Castlelake, founded in 2005, has been an active player in the aviation sector, investing over $21bn and acquiring more than 650 aircraft. The firm has built extensive relationships with approximately 200 airlines globally and employs specialised teams to manage every stage of aircraft investing, financing, and trading.
Goldman Sachs & Co LLC is serving as Castlelake’s exclusive financial advisor, with legal counsel provided by Milbank LLP. The deal is subject to customary closing conditions.
