Aeroplane

Investec holds first close of its latest aircraft fund

Investec Aviation Finance has held the first close of its aircraft fund, Investec Aircraft Syndicate Limited (IASL).

IASL will invest USD500m in new generation, fuel efficient aircraft on lease to a number of leading airlines across the globe.

It has the ability to increase the size of the fund and is in discussions with various parties looking to invest in its second raising.

The key investment proposition of IASL is:
 
• High single digit cash yield paid from contracted fixed cashflows locked in for average five years
•Investment in a real asset class which has a demonstrated track record of providing stable and uncorrelated returns.
• Overall return expectation of mid-teens over a five to eight year horizon
• Managed by a highly experienced aviation finance team within Investec
 
Investec’s previous offering, Investec Global Aircraft Fund, which has many similar characteristics, manages 20 aircraft with an acquisition cost of approximately USD1bn.
 
These funds have attracted investments from insurance companies, pension and superannuation funds, private banking and high net worth individuals across various geographies.
 
IASL is managed by Ramki Sundaram and David Phillips, two senior members of Investec’s aviation finance division.
 
The fund managers, IASL, say: “We are delighted by the support we have received from institutional investors for IASL. We see an increasing demand for investment in this alternative real asset class, primarily due to the combination of good USD cash yields, stable and uncorrelated returns. IASL aims to satisfy all these requirements.”

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