KKR has announced a definitive agreement to increase its ownership stake in Altavair and its sister company AV AirFinance, using capital from its balance sheet. The partnership, which began in 2018, has already seen KKR‑managed funds commit more than $5 billion to aircraft leasing and lending transactions. KKR originally acquired a 50 % interest in Altavair in 2019 as part of a $1 billion capital commitment, and added $1.15 billion in January 2023, deepening its exposure to the aviation leasing market.
Altavair has acquired and leased more than 80 aircraft for airlines and cargo operators worldwide, and has completed over $14.5 billion in commercial aircraft lease transactions since its inception in 2003. Since 2018, the company has acquired more than 90 aircraft in partnership with KKR, underscoring the scale of the platform and the long‑term demand for commercial aircraft assets.
The new stake is a key component of KKR’s Asset‑Based Finance strategy, which seeks to generate recurring earnings from hard assets backed by contractual cash flows. Aviation leasing offers a resilient, long‑term revenue stream with robust contractual protections, making it an attractive fit for KKR’s three‑pillar model that includes asset management, insurance, and infrastructure. By increasing its equity position, KKR aims to support Altavair’s next growth phase and further integrate the platform into its broader ABF portfolio.
Daniel Pietrzak, Partner and Global Head of Private Credit at KKR, said the partnership “reinforces our commitment to the aviation sector, an important area of opportunity for our Asset‑Based Finance strategy.” Brandon Freiman, Partner and Head of North American Infrastructure, added that “commercial aircraft assets have proved highly resilient across market cycles, supported by long‑term demand for global air travel and strong contractual protections.” Altavair CEO Steve Rimmer expressed delight, noting that the deepened partnership “has been integral to growing Altavair into the successful platform it is today.”
The transaction does not disclose specific financial terms or the exact percentage increase in KKR’s stake, but the deal is expected to close in the coming months. The move signals KKR’s confidence in the aviation leasing market’s resilience and its intent to capture upside from Altavair’s expanding portfolio, potentially generating additional fee and performance income for KKR’s asset‑management and credit businesses.
No market reaction data were available at the time of reporting, and no analyst commentary was cited in the fact‑check sources.
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