FTAI Aviation Surpasses Expectations with $2 Billion Fundraising
FTAI Aviation Achieves Fundraising Milestone
FTAI Aviation Ltd. (NASDAQ: FTAI) recently accomplished a major fundraising milestone, having successfully concluded its fundraising efforts for its inaugural Strategic Capital Initiative vehicle, known as FTAI SCI I, by reaching an impressive hard cap of $2.0 billion in equity commitments. This achievement is a significant increase from its initial target of $1.5 billion, demonstrating the company's solid appeal in the market.
Joe Adams, the Chief Executive Officer of FTAI Aviation, expressed enthusiasm over this progress, stating, "We made the strategic decision less than one year ago to launch an asset management business with the initial strategy focused on acquiring on-lease, mid-life aircraft, and we are thrilled with the group of institutional investors that have supported us in the inaugural vehicle." FTAI Aviation is recognized as a leader in aftermarket engine maintenance, particularly for CFM56 and V2500 engines, and aims to become one of the largest leasing companies globally for these aircraft models.
Understanding the Potential of FTAI SCI I
The aircraft market for mid-life, current-generation aircraft is immense, estimated to be around $300 billion. According to Kallie Steffes, Head of Strategic Capital at FTAI Aviation, the market requires a well-capitalized buyer who can also meet the engine demands of airlines as they extend the operational lives of their fleets. "Our global engine maintenance footprint enables us to combine our aircraft investing acumen and differentiated operational capability to deliver compelling risk-adjusted returns for our investors," Kallie added.
Investments and Future Plans
To date, FTAI SCI I has invested an impressive $1.4 billion, successfully acquiring 101 aircraft. In addition to its current acquisitions, FTAI SCI I has another $2.1 billion worth of aircraft under contract, propelling the total number of aircraft covered by the vehicle to 190, whether closed or under letters of intent. The vehicle anticipates full deployment by the end of the first half of 2026.
Diverse Investor Support
A diverse range of global equity investors have shown immense interest in the Strategic Capital Initiative, including asset managers, public pensions, insurance companies, family offices, foundations, and endowments. This broad support underscores the confidence in FTAI Aviation's strategic direction and operational capability.
Legal and Financial Guidance
Kirkland & Ellis LLP has stepped in as the legal counsel for the formation of FTAI’s Strategic Capital Initiative, while Lincoln International LLC is acting as its financial advisor. Their expertise is expected to guide FTAI towards successful operational execution as it moves forward in this substantial venture.
About FTAI Aviation Ltd.
FTAI excels in providing aftermarket power for the renowned CFM56 and V2500 engines that are essential for many of the world’s most utilized commercial aircraft. The company’s Maintenance, Repair, and Exchange services deliver flexibility and cost efficiency to both airlines and asset owners by offering the leasing, sale, and exchange of high-quality, refurbished engines and modules. FTAI also collaborates with institutional investors through its Strategic Capital Initiative to manage and co-invest in on-lease narrowbody aircraft, laying a strong foundation for future growth and profitability.
Frequently Asked Questions
What is FTAI Aviation's recent fundraising achievement?
FTAI Aviation successfully raised $2 billion in equity commitments for its inaugural Strategic Capital Initiative, FTAI SCI I.
How much has FTAI SCI I invested so far?
To date, FTAI SCI I has invested $1.4 billion in acquiring 101 aircraft, with additional contracts under negotiation.
What is the expected deployment timeline for FTAI SCI I?
Full deployment of FTAI SCI I is anticipated by the end of the first half of 2026.
Who are FTAI Aviation's target investors?
FTAI has attracted a diverse group of institutional investors, including asset managers, insurance companies, and public pensions among others.
What role do Kirkland & Ellis LLP and Lincoln International LLC play?
Kirkland & Ellis LLP is providing legal counsel, while Lincoln International LLC is serving as financial advisor to the formation of FTAI’s Strategic Capital Initiative.
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