New research from Global Jet Capital, a provider of financing solutions for large-cabin, long-range private jets, reveals there are around 62 aircraft of this size for sale in the Middle East, with a combined value of around $646.9 million.
Some 19 of these aircraft are registered in Saudi Arabia, and 18 are in the United Arab Emirates. The remainder is spread out across the Middle East.
The findings reveal that in total, there are around 559 mid to large sized private jets in the region, meaning that around 11% of the fleet is currently on the market for sale.
The aviation finance specialist, which recently agreed to purchase the aircraft lease and loan portfolio of GE Capital Corporate Aircraft in the Americas representing approximately $2.5 billion of net assets, has around $1 billion to lend to clients to purchase relevant business aircraft in the Middle East and elsewhere around the world.
The aircraft Global Jet Capital funds typically cost between $25 million and $75 million each, and it says up to 80% of the funding used to purchase these is sourced through external financing.
Shawn Vick, Executive Director of Global Jet Capital said: “Over the long term we expect to see growth in the sale of mid to large sized business jets in the region, and we are well positioned to meet the finance demand to help facilitate this.
“Many potential clients will be looking to upgrade to a more modern aircraft, but as the region’s wealth increases, we expect to see more first-time buyers.”
Global Jet Capital, which was launched last year, is capitalized by three global investment firms – GSO Capital Partners, a Blackstone company in partnership with Franklin Square Capital Partners*; The Carlyle Group; and AE Industrial Partners.
The company’s current management team and executive committee is composed of leaders from business jet manufacturers, maintenance and service providers and leading financial institutions who have served the private aircraft industry for a combined 200-plus years and have completed over 3,500 aircraft transactions.
Global Jet Capital
Global Jet Capital is a financial services company providing financing solutions for the private aircraft market. The business is capitalized by world-class private investors with expertise in the global aviation industry: GSO Capital Partners, a Blackstone company, in partnership with Franklin Square Capital Partners, The Carlyle Group and AE Industrial Partners. We offer a management team with expertise in financing, asset management, acquisition, marketing, lease administration and product support that understands the intricacies of the private aircraft market. Global Jet Capital serves virtually all jurisdictions and has the capital and expertise to meet the needs of the global private aircraft market, with flexibility and speed. www.globaljetcapital.com
GSO Capital Partners and Franklin Square Capital Partners
GSO Capital Partners, with approximately $81 billion in assets under management, is the credit platform of The Blackstone Group, a leading global institutional alternative asset manager, with assets under management of approximately $330 billion**. Franklin Square Capital Partners is a leading manager of alternative investment funds designed to enhance investors’ portfolios by providing access to asset classes, strategies and asset managers that typically have been available to only the largest institutional investors. Franklin Square manages over $16.8 billion** in assets. Franklin Square’s funds are currently sub-advised by GSO or its affiliates. www.blackstone.com/gso
* Investment to be made by funds advised or sub-advised by GSO Capital Partners and Franklin Square Capital Partners or their respective affiliates, as applicable. ** As of June 30, 2015
The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $193 billion of assets under management across 128 funds and 159 fund of funds vehicles as of June 30, 2015. Carlyle’s purpose is to invest wisely and create value on behalf of its investors. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries including aerospace, defense and government services; consumer and retail; energy; financial services; healthcare; industrial; real estate; technology and business services; telecommunications; and media and transportation. The Carlyle Group employs more than 1,700 people in 35 offices across six continents. www.carlyle.com
AE Industrial Partners
AE Industrial Partners is a private equity investment company founded in 1998, by David Rowe and his late father, aviation pioneer Brian Rowe, to make direct investments in aerospace, power generation and specialty industrial companies. Today AE Industrial is led by 11 partners with each having an average of over 30 years of relevant operating and direct investment experience. AE Industrial is focused on investing in precision component manufacturing, distribution, MRO (maintenance, repair and overhaul) and industrial service-based businesses that are strategically important to their market places. AE Industrial has invested in over 30 companies including: Aviall, Dynamic Precision Group, Grand Prairie Accessory Services, Landmark Aviation, Kellstrom Materials and Belcan Corporation. www.aeroequity.com