PE trio refuels aircraft leasing firm with $250m

Cinven, CVC and Oak Hill have invested a total of $1bn in Dublin-headquartered Avolon, which has also raised $1bn in debt financing.

Cinven, CVC Capital Partners and Oak Hill Capital Partners have invested a further $250 million into aircraft leasing company Avolon. It brings the trio’s total equity investment to $1 billion, having previously invested $750 million when the company was founded in May 2010.

Led by Dómhnal Slattery, the former founding chief executive of RBS Aviation Capital, Avolon has also recently secured $400 million from European aviation finance banks DVB, Nord LB and KfW IPEX-Bank. The amount brings to $1 billion the total debt raised since the company was founded.

The capital raise will continue to fund the growth of Avolon’s fleet, the company said in a statement. It currently counts 18 airlines as customers and has a committed fleet of 60 aircraft worth $2.8 billion.

Avolon also said it had struck sale-leaseback deals for 11 aircraft with four airlines: Germany’s Air Berlin, Australia’s Virgin Blue, India’s Indigo Airlines and The Philippines’ Philippine Airlines.

The Carlyle Group, TPG, Guggenheim Partners and Fortress Investment Group also have aviation or aviation finance-related investments and/or manage dedicated aviation investment units.