KKR & Co. will invest $1.15 billion in leased commercial aircraft through its partnership with aviation finance firm Altavair.
The bet on air travel, made through KKR’s credit and infrastructure funds, adds to the roughly $8.3 billion that the alternative-asset manager has put into the aviation sector since 2015. KKR owns about 50% of Altavair.
The investment “underscores the conviction that we have in this space and our confidence in Altavair as a partner,” Dan Pietrzak, KKR’s co-head of private credit, said in a statement.
Aviation finance provides stable, collateral-backed cash flow and is particularly attractive as the pandemic’s effects on the travel industry diminish, Pietrzak said in an interview. KKR is targeting double-digit returns across its portfolio of aviation-leasing assets.
KKR’s previous investments in the sector include AV AirFinance, Atlantic Aviation, KKR DVB Aviation Capital, K2 Aviation, Wheels Up, Global Jet Capital and Jet Edge, according to the statement.
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