Aviation aftermarket giant AAR and Napier Park Global Capital are backing a joint venture that will focus on acquiring late-life commercial aircraft.
AAR will be the sole servicer and asset manager for the new alliance, managing the portfolio and developing exit strategies. According to a joint statement, the main focus is on acquiring yield-generating assets that maximize returns as aircraft reach the end of operational life.
AAR is the third-largest aircraft MRO worldwide and one of the largest suppliers of engine and airframe parts. Napier Park is an alternative investment manager that managed $11.5 billion as of September. Napier Park’s Real Assets group manages roughly $6 billion of equipment assets and partners with companies like AAR.
Financial details of the arrangement were not provided.