Private equity firm ATL Partners and Canada’s Public Sector Pension Investment Board have teamed up to back a new aircraft financing and leasing firm, SKY Leasing. The partners have launched the new financing firm with $250 million of initial equity capital.
SKY Leasing will be led by Richard Wiley who has established and sold on two other leasing businesses. The new venture is set to buy certain assets held by Sky Holding Company (SHC), which is controlled by Wiley. Along with Wiley, members of SHC’s management team will take the helm at Dublin-headquartered SKY Leasing.
The new specialty lender will focus on financing commercial airlines leasing young or mid-life Airbus and Boeing aircraft. The firm will also service 54 planes on behalf of three securitisations.
“We look forward to building a best-in-class lessor with an initial target of $1 billion of Boeing and Airbus aircraft,” said Wiley.
Wiley and his team have relationships with more than 100 airlines globally and have executed more than 600 aircraft transactions valued at over $20 billion, according to a statement.
“As a long-term investor, PSP Investments views aviation finance as an attractive sector to deploy significant capital in the years ahead,” said Jim Pittman, managing director, private equity for PSP Investments. “This investment is consistent with our direct and co-investment strategy to partner with experienced management teams who have the capability to scale investments over time.”
Before forming SHC and most recently, SKY Leasing, Wiley and his team co-founded Pegasus Aviation Finance Company in 2004 before selling it to AWAS in 2006. The team then established Jackson Square Aviation in 2010 before selling it to Mitsubishi UFJ Lease & Finance Company in 2012. Wiley stayed on as Jackson Square chief executive until March 2015 when he re-joined SHC.
The Aerospace, Transportation and Logistics Fund or ATL Partners was formed in 2014 to invest in the aerospace, transportation and logistics sectors principally in North America with enterprise values of $250 million and higher.
The Public Sector Pension Investment Board had $112 billion of net assets under management as of 31 March. Its investments include public equities, private equity, bonds and other fixed income securities, real estate, infrastructure and natural resources.