AIP Capital and Monroe Launch $1B Leasing Venture

AIP Capital has entered into a strategic partnership with Monroe Capital to jointly pursue an aircraft leasing venture targeting a portfolio of up to $1 billion in aviation investments. This venture will focus on acquiring mid-life commercial aircraft that are on long-term leases to airlines across the globe, aiming to capture value in a segment often overlooked by larger lessors prioritizing new deliveries.

To support this initiative, Monroe Capital has secured a $500 million senior secured warehouse facility, jointly backed by the New York Branch of Deutsche Bank and Fifth Third Bank. This facility will serve as the financial backbone for the acquisition phase of the portfolio, enabling quick and structured access to capital for the targeted assets.

This move reflects a growing trend in aviation finance where alternative asset managers and private capital partners enter the mid-life aircraft space, seeking to take advantage of post-pandemic fleet restructuring and global demand recovery. By focusing on mid-life aircraft with established lease contracts, the venture reduces risk while generating stable cash flows.

AIP Capital, known for its aviation investments and leasing activities, will contribute technical, asset management, and industry expertise to the venture. Monroe Capital, a US-based investment firm, brings deep experience in structured credit and alternative asset financing. Together, their collaboration represents a notable convergence of aviation sector specialization and financial structuring capabilities.

This leasing platform also arrives at a time when airlines globally are looking for cost-effective ways to grow and replenish fleets, often preferring leased mid-life aircraft over new orders due to lead times and capital constraints.