M&G to acquire stake in Sky Leasing
M&G Investments (M&G) is to acquire a stake in full-service aircraft asset manager firm Sky Leasing.
Sky Leasing LLC, a full-service aircraft asset manager, has closed its first aircraft leasing fund with a $300 million equity investment from M&G Investments (M&G).
As servicer to the fund, Sky Leasing will focus on providing fleet solutions for its longstanding airline customers through the acquisition of current-generation and next-generation Boeing and Airbus aircraft.
M&G will also acquire a stake in Sky Leasing to support the growth of its asset management platform, including the launch of its Irish servicing operation and continued operations in San Francisco, California.
The aircraft leasing market is an efficient way for airlines to update their fleets with next-generation aircraft. The fund will provide approximately $1 billion of capital to invest in new and current-generation aircraft.
"We are excited to launch this first aircraft fund with M&G, who supports our vision for the growing opportunity to provide capital and aircraft fleet solutions to our global airline customer network, in addition to providing liquidity in the aircraft trading market," said SKY Leasing Chief Executive Officer Austin Wiley. "We look forward to building a best-in-class portfolio with an initial target of $1 billion of Boeing and Airbus aircraft."
Alex Seddon, Co-Head of Private Credit, M&G Investments, said: "The management team's expertise will enable our clients to access an attractive asset class that produces long term cash flows and which is underpinned by strong fundamentals. This strategic partnership builds on our experience of investing in aircraft leasing through the ABS and private debt markets, and is an example of how we can structure innovative investment solutions to benefit our clients."
Sky Leasing LLC is an aircraft leasing asset manager with offices in Dublin, Ireland and San Francisco, California.
M&G Investments is part of M&G Plc, a savings and investment business which was formed in 2017 through the merger of Prudential plc's UK and Europe savings and insurance operation and M&G, its wholly owned international investment manager. M&G Plc listed as an independent company on the London Stock Exchange in October 2019 and has £341 billion of assets under management (as at 30th June 2019).