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AIP Capital and Monroe Capital Form Leasing Joint Venture

AIP Capital and Monroe Capital Establish $1 Billion Aircraft Leasing Joint Venture
AIP Capital and Monroe Capital have announced the formation of a joint venture aimed at acquiring a diversified portfolio of aircraft leasing assets valued at up to $1 billion. The partnership will focus on mid-life aircraft placed on long-term leases with airlines across the globe. Monroe Capital will provide the investment capital, while AIP Capital will manage asset servicing responsibilities.
Strategic Investment and Financial Backing
The joint venture’s initial investment target is approximately $1 billion, supported by Monroe’s secured commitments from Deutsche Bank AG New York Branch and Fifth Third Bank. These commitments include a $500 million senior secured warehouse facility designed to facilitate the acquisition of aviation assets. Jared Ailstock, Managing Partner at AIP Capital, emphasized the venture’s ability to provide scalable and stable capital, which is particularly valuable amid increased volatility in capital markets. He highlighted the partnership’s potential to enhance value for global airline customers and lessor trading partners, expressing optimism about expanding the venture in collaboration with Monroe, a firm recognized for its expertise in asset-based finance.
Aaron Peck, Managing Director and Co-Head of Alternative Credit Solutions at Monroe Capital, noted that the joint venture represents a strategic extension of Monroe’s asset-based finance business into the aviation sector. He underscored the alignment with experienced operators and the sector’s strong asset fundamentals and long-term demand visibility. Peck expressed confidence that the venture would deliver attractive, risk-adjusted returns for investors.
Challenges and Market Implications
Despite the promising outlook, the joint venture faces several challenges. Both firms must secure regulatory approvals and ensure close alignment of their operational strategies. Effective management of potential conflicts of interest will be essential to the venture’s success. Market analysts have pointed to possible investor skepticism, particularly concerning the venture’s impact on the real estate investment trust (REIT) sector. Additionally, competitors in the aircraft leasing market may respond with increased competition or strategic initiatives aimed at countering the influence of the new partnership.
Legal and advisory support for the transaction was provided by Gibson Dunn as counsel and PwC as tax advisor to AIP Capital, while Milbank LLP and KPMG served as counsel and tax advisor, respectively, to Monroe Capital.
Industry Update: Leadership Change at BOC Aviation
In related industry developments, BOC Aviation has announced the appointment of Yogesh Farswani as head of OEM strategy and procurement, effective July 1, 2025. Farswani, who joined BOC Aviation in May 2024 as Head of Engines, will take over responsibility for the Procurement department and continue reporting to Chief Operating Officer Thomas Chandler. He succeeds Alistair Greig, who is retiring after 22 years with the company. CEO Steven Townend acknowledged Greig’s significant contributions and expressed confidence that Farswani’s extensive industry experience will support BOC Aviation’s ongoing fleet expansion and strengthen relationships with original equipment manufacturers.

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