Bridgepoint, GFH and AIP Capital have formed a strategic partnership to build a commercial aircraft engine investment platform targeting a portfolio value of more than $1bn (£747m).
The deal brings together London-listed Bridgepoint, Bahrain-based GFH and aviation specialist AIP Capital.
The partnership reflects continued investor interest in specialist aviation assets, which can provide exposure to the commercial aerospace sector through engine ownership and related leasing activity.
The partners have not disclosed the specific capital commitments made by each party to the venture.
For LPs, aircraft engines represent a specialist asset class supported by demand from airlines and aircraft lessors, as well as ongoing requirements for engine maintenance and replacement.
Further details on the platform’s investment mandate and deployment pipeline will help determine its potential implications for the UK aviation and investments market.
Rohit Dhote, partner and co-head of credit opportunities at Bridgepoint, said: “Engines are one of the most attractive asset-based opportunities right now, providing a cash-generative asset with a genuinely differentiated return driver.
“That is a valuable diversifier for our LPs. We’re delighted to be building this with GFH, who share our conviction in asset-backed strategies and bring deep roots in the Middle East, one of the most important regions for aviation, as well as with AIP Capital, whose sector expertise and direct access to manufacturers give the platform an origination edge that few investors can match.”
Hammad Younas, chief executive officer, GFH Equities, said: “Our partnership with Bridgepoint and AIP Capital reflects GFH’s established strategy of aligning with world-class managers to deliver differentiated and defensive asset-backed opportunities to our clients, while marking our entry into the aviation sector.
“Aircraft engines represent a compelling asset class, combining resilient, contracted cash flows with robust long-term structural demand. We look forward to working alongside our partners to scale the platform and provide investors across the region with access to this growing segment of the global aviation market.”
