Launch of a Multibillion Dollar Aircraft Leasing Fund

Service Area
Asset Management, Aviation Finance, Consultancy, Valuation
Target Sector
Investors, Lessors


Our client set out to launch and manage a Shariah-compliant aircraft leasing fund with a targeted capitalization of five billion dollars. The structure of the fund required a combination of equity and debt, with a targeted asset profile of new narrowbody and widebody aircraft.

ACC Aviation was engaged to develop the financial model as part of the funds capital raising process, providing critical analysis and due diligence material for prospective equity and debt investors. After successfully launching and capitalizing the funds, the client required further specialist support in negotiating various contracts, including aircraft lease agreements, engine power-by-the-hour agreements, OEM delivery concessions, side letters, and various BFE & SCN selection requirements.

Our Approach

Across the duration of the project, ACC Aviation carried out several key activities:

  • Financial Modeling. ACC Aviation developed a robust financial model, forecasting the fund’s economics, future aircraft values (calculating actual and synthetic values against lease return conditions and maintenance reserves), projected investor returns, lease management fees and fund expenses, debt amortization schedule and various financing ratios.
  • Financing Support. Alongside the development of the financial model, ACC Aviation provided opinion letters confirming expected aircraft residual values at the end of the lease term, including aircraft redelivery conditions and forecasted maintenance reserve balances.
  • Contract Advisory. Throughout the various transaction processes, ACC Aviation advised the client on negotiating various contracts associated with the deal, including aircraft lease agreements, engine power-by-the-hour agreements, OEM delivery concessions, side letters, and multiple BFE & SCN selection requirements.

Client outcomes

The fund was launched and successfully capitalized in line with the client’s objectives. It has since expanded its portfolio to more than 50 new-generation narrowbody and widebody aircraft, receiving several awards for its innovative capital structure and leasing transactions.

ACC Aviation continues to support the client on various technical matters, including portfolio valuations and technical inspections.

Key achievements

  • Successfully capitalized and launched a multibillion-dollar aircraft leasing fund.
  • Successfully deployment of capital into an aircraft portfolio of more than 50 new generation narrowbody and widebody aircraft.

Related case studies

AdobeStock 132296282

Comair Liquidation: Aircraft recovery, transition, and remarketing

Discover how ACC Aviation navigated complex aircraft recovery and remarketing challenges, securing optimal outcomes for a bank client amidst bankruptcy protection and liquidation.

15 April 2024Read more
AdobeStock 624544739 1

Advising a lender on drafting and negotiating an aircraft lease agreement

ACC Aviation provided valuable assistance to a West African financial institution by helping them protect their interests and reduce financial exposure during an aircraft remarketing process. Through careful tailoring of the aircraft lease agreement to account for the unique technical condition of the aircraft, ACC Aviation was able to help the lender structure a lease that effectively transferred significant risk and capital expenditure to the lessee.

1 September 2023Read more

Successful aircraft remarketing: maximising value from a distressed aircraft

ACC Aviation's asset management team recently assisted an HNWI in aircraft remarketing and disposing of a Boeing 737-300 aircraft. The aircraft, awarded to the client through a court-ordered settlement, belonged to the now-defunct Tayaran Jet.

8 August 2023Read more
Aircraft Repossession

Recovery and remarketing of a non-performing aircraft portfolio

Over ten months, ACC Aviation successfully supported a consortium of lenders to prepare and fully liquidate the non-performing portfolio, recovering significant amounts of capital for the lenders.

21 November 2022Read more