“Arena Aviation Capital portfolio reached a US$ 2.0 billion milestone AUM and sees growing demand for independent dedicated asset managers.”
On January 17, 2019 Arena Aviation Capital announced that the company over the full year 2018 originated, structured and successfully executed for its investor client base the acquisition of 15 aircraft and one engine with a total market value of approximately US$ 420 million. With this and the current pipeline of deals it is closing on, the portfolio will grow to 60 aircraft by the end of 2019, reaching a milestone AUM (Assets Under Management) of approximately US$ 2 billion.
“We had to look and work harder to find the right deals for our investors during 2018, with more competition appearing in the mid-life aircraft segment. Having further grown our presence as a full-service aircraft investment manager in the current market therefore feels extra gratifying, and positions us nicely for the years to come. We definitely see growing acceptance of the aircraft investment asset class, and we expect asset yields to remain attractive, and we therefore definitely expect a continuing increase in the demand for our bespoke investment management services" says Erik Dahmen, Marketing Director and Founding Partner.
After a solid 2017, Arena continued on the same path, successfully sourcing deals suitable for funding through the Japanese Operating Lease market. Apart from trades with other lessors, Arena increased the proportion of sale & leaseback transactions. The company is also proud to welcome new airline customers in its managed portfolio, amongst which Iberia, Aeroméxico and Air Canada.
The Arena team grew to 17 employees during the year, strengthening in particular its in-house technical and lease management capabilities. Whilst Amsterdam will remain its home base, Arena management are planning the establishment of offices abroad this year.
“Our platform is now mature and provides for significant capacity to scale up and grow further. With that and the help of our excellent track record, the time has come to branch out and increase our investor base. We are at a crossroads when it comes to considering our options and strategies for accelerated growth. Opening based in Ireland and/or Asia for example are likely to be part of that strategy” said Patrick den Elzen, Managing Director and Founding Partner.
About Arena Aviation Capital:
Arena Aviation Capital is a full-service aircraft investment management company focusing on the complete life cycle of acquiring and leasing used commercial aviation assets, servicing investment and airline customers worldwide and providing services including the origination, financing, risk management, and administration (finance/accounting and legal) of commercial aviation assets. Arena also provides pre-packaged tailor-made solutions for airline customers for their mid and end-of-life assets. Arena today manages 30 aircraft leased to airlines worldwide for customers in Europe, North America and Asia.