JSM Financial: U.S. private equity firm Carlyle Group to invest $60 million in aviation JV.

Carlyle Group is to invest $600 million in a joint venture with RPK Capital Management to buy commercial aviation assets.
 
April 22, 2010 - PRLog -- The Carlyle Group, an U.S. private equity firm, which JSM Financial understands has over $88 billion of assets under management, is to invest $600 million in a joint venture that will buy commercial aviation assets globally in what can be seen as another sign of slowly recovering aviation finance markets.

Carlyle is to partner with RPK Capital Management, a Chicago based aviation investment specialist firm, under a new company specifically set up to purchase over $1billion of assets thanks to leverage.

JSM Financial sources indicate that RPK who will be investing $20 million and who intend purchasing bank debt secured against assets like jets and spare parts and also various aircraft and engines to be leased out to airlines, will be responsible for managing the portfolio.

This is a milestone investment for the Carlyle Group as it is their first ever foray into investment in aircraft leasing and debt, and is a rare divergence from its usual practice of managing its own investments.

“We are seeing signs of recovery in the airline consumer market, but the credit dislocation has been so severe that as capital comes back it is flowing into blue chip carriers like Lufthansa,” JSM Financial believes the managing director at Carlyle group was recently quoted as saying. “There are hundreds of other airlines that are struggling to find financing … the question is will the markets be open to them or will there be some alternative structure that they are forced to look to? That is what we are trying to create.”

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JSM Financial is an independent broker focused on the realization of superior returns from seed stage and early-stage equity investment and active partnerships with exceptional entrepreneurs building market-leading technology companies.
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