Avolon to Acquire $5B Castlelake Aviation Portfolio

Avolon has announced a major acquisition, agreeing to purchase Castlelake Aviation’s $5 billion portfolio, which includes 118 aircraft, 13 new-technology aircraft commitments, 2 engines, and 9 loans. This deal is set to significantly enhance Avolon’s fleet and financial standing.

Founded in 2021 by investment firm Castlelake, Castlelake Aviation has rapidly expanded its portfolio to include a range of narrowbody, widebody, and regional jets. The acquisition aligns with Castlelake’s strategy to deliver risk-adjusted returns to investors while providing Avolon with valuable aviation assets.

Andy Cronin, CEO of Avolon, stated, “This transaction accelerates our growth plans, adding assets that will strengthen our cash flow and earnings profile. Our robust balance sheet and liquidity have enabled us to acquire these assets, which complement our existing portfolio and support our positive ratings trajectory.”

Castlelake, an established player in the aviation sector since 2005, has invested over $21 billion in aviation assets and acquired more than 650 aircraft. The firm has built strong relationships with nearly 200 airlines.

The transaction is expected to close in the first quarter of 2025, pending customary conditions. Goldman Sachs & Co. is advising Castlelake on the deal, with Milbank LLP providing legal counsel.