Aviation Finance

Aviation finance is an alternative asset class focused on the provision of capital to finance the purchase or lease of an aircraft. We believe the asset class has historically shown resilience through market cycles and seeks to deliver steady returns over the long-term on a risk-adjusted basis. It aims to provide downside protection, with its dual security of credit (i.e., the airline) and asset-backed (i.e., the aircraft) lending.

Airlines increasingly look for alternative/flexible sources of funding when the availability of traditional sources becomes limited. Our aviation finance platform offers aircraft-backed investment solutions across the capital structure and risk spectrum. We can provide access to a range of investment solutions in aircraft finance through a variety of debt, equity and structured finance instruments.

Services Provided

Debt, Equity, Advisory Services

Investment Team Location

London

Our Advantage

Established Team - Managed by a team that has been working together for over 10 years, with experience establishing, managing and exiting aircraft investments, focused on return and growth of capital
Extensive relationship network - with airlines and lessors globally, we believe the team has a strong ability to identify potential opportunities and extract value within complex cross border transactions
Impartial, non-conflicted partner - with hands on active management with experience managing restructurings, repossessions, and work outs

Capital at risk. The value of investments and the income from them may fall as well as rise and is not guaranteed. Investors may not get back the full amount invested.

Airline Market Risk: The aircraft leasing market is affected by various cyclical factors that are not within the control of Muzinich. At the time when aircrafts are being marketed for re-lease or sale, there can be no assurance that prevailing industry conditions will allow re-lease or, where applicable, sale, on satisfactory terms.

“We believe an investment into aviation finance offers investors the potential for what in our view is an attractive income stream, uncorrelated to other asset classes, with minimal volatility”

Alok Wadhawan, Global Head of Aviation Finance

Our Strategies

Insights

May 23, 2024

From recovery to resurgence: The outlook for aviation finance

In our latest Q&A, Alok Wadhawan and Tom Light share their thoughts on a remarkable turnaround in the aviation sector and the implications for investors.

Nov 21, 2023

The Muzinich Insurance Podcast

Please click to listen to our inaugural Insurance Podcast. Over a series of podcasts, we'll be tackling a range of insurance asset management topics, which we hope will provide useful insights for our insurance clients and contacts when thinking about their own investment decisions.

Jan 17, 2023

A New Reality

In our somber-minded daily world of earning a living we occasionally wander into a dreamworld of a living earned for us.