Global aviation aftermarket company AAR (NYSE: AIR) has announced it has partnered with Napier Park Global Capital to expand its commercial aircraft asset management activities, the company said.
The partnership creates a joint venture that will focus on acquiring late life commercial aircraft. AAR has been appointed the sole servicer for the newly formed strategic alliance.
Under the agreement, AAR will bring its extensive aircraft MRO, leasing and trading experience to the role of asset manager. AAR will establish and manage the aircraft portfolio, as well as develop exit strategies. The main focus is on acquiring yield generating assets maximizing returns as aircraft reach the end of operational life. AAR will work with majority partner, Napier Park, to target assets that retain value in the aftermarket once aircraft retire from service.
BNP Paribas acted as exclusive financial and capital raising advisor to AAR in the transaction.
Napier Park is an alternative investment manager that, as of September 30, 2018, managed USD 11.5 billion in capital and will be the majority equity participant in the joint venture.
AAR is a global aerospace and defense aftermarket solutions company that employs more than 6,000 people in over 20 countries.