Private Equity, Hedge Funds Eye Bizav Financing Market
Business aircraft financing solutions firm Global Jet Capital expects more private equity firms and hedge funds to enter the business aviation finance sector soon to diversify their portfolios and reduce their exposure to equities and bonds. The company also believes that the price of midsize to large-cabin business jets is beginning to stabilize following several years of falling valuations, further raising the appeal of business aviation financing to private-equity firms and hedge funds.
“Several key stock market commentators are predicting a stock market correction, and there is growing volatility in the markets,” said Global Jet Capital COO Dave Labrozzi. “Private-equity firms and asset managers are increasingly looking for ways to invest their funds in a way that offers low correlation with equities and bonds, but which also provides a strong income. Business aviation finance offers exactly this, and you have the added security of having the loan secured against a valuable asset.”
Global Jet Capital is capitalized by three global investment firms: GSO Capital Partners, the Carlyle Group, and AE Industrial Partners. It has some $2.5 billion in business aircraft assets under management.