Castlelake closes fourth aviation fund at $1.6bn

The fund has already committed to 65 aircraft in 13 transactions.

Minneapolis-based investor Castlelake has held a final close of its latest aviation fund with $1.6 billion of commitments.

Castlelake Aviation IV Stable Yield Opportunities received capital from a range of institutional investors including pension funds, sovereign funds and endowments, with a mix of returning and new investors.

The fund will aim to deliver returns by focusing on investing in high-quality, younger mid-life aircraft and related aviation assets. The fund has already deployed €830 million in 65 aircraft across 13 transactions. The firm’s previous fund closed at $1.04 billion in 2019.

Castlelake’s aviation business has a dedicated team of 60 investment professionals and has invested more than $15 billion in aircraft and aviation assets. It has acquired or managed more than 650 aircraft and has 175 airline relationships across 60 countries.

Rory O’Neill, managing partner and chief executive officer of Castlelake, said: “We believe the current aviation market provides many compelling opportunities in which our exceptional team will be able to deploy capital.”