ABL Aviation, the global independent aircraft investment management firm, announced that it has established a joint venture with Ellington Management Group (“Ellington”), an alternative investment manager, to opportunistically deploy capital across the global aviation industry and provide exposure to directly sourced deals.
The joint venture will target $800 million in aircraft assets and seek to generate attractive, uncorrelated returns to investors by executing on a strong existing deal pipeline. The joint venture’s opportunistic approach, which adds to strategic partnerships held by ABL Aviation in Japan, will allow for flexibility across asset types, asset age, duration, structures and jurisdictions. ABL Aviation will act as asset servicer and manager for all aircraft, while Ellington will provide financial and strategic support.
Through the formation of this unique partnership, along with its deep global origination network and extensive in-house technical expertise, ABL Aviation will be positioned to grow the $2.5B it has invested since inception and further develop its offering to global institutional investors. Furthermore, Ellington’s strong global network of investors and deep U.S. market and investment expertise will complement ABL Aviation’s international presence as the joint venture begins sourcing aircraft deals.
Ali Ben Lmadani, CEO of ABL Aviation, commented: “We are excited to partner with Ellington on this new venture which will address growing investor awareness of the significant, high-yield opportunities currently accessible in the global aviation market. As the market begins to bounce back from the pandemic downturn, we expect rising passenger numbers and a lifting of restrictions to prompt a buoyant market with clear opportunities for investment growth.
“At ABL Aviation we have a strong track record of successful aircraft acquisitions, leasing and financing transactions. Our ability to source and successfully manage transactions across a range of jurisdictions, asset types and ages complements Ellington Management Group’s impressive investor network and global presence.”
Robert Kinderman, Vice Chairman and Co-Head of Credit Strategies at Ellington, added: “ABL Aviation has established itself among the aircraft industry as a preeminent and innovative global asset manager well-positioned to source and execute dynamic, complex transactions. We are pleased to partner with Ali and the entire ABL Aviation team on the heels of resurgence across the aviation industry and look forward to working closely with them to identify unique investment opportunities that deliver solid results to investors.”