Investec provides growth finance facility to APOC Aviation for engines and landing gear portfolio
Utilising an initial tranche of funds, APOC has secured an on-going finance facility with Investec for multiple lease assets. APOC’s majority shareholder Egeria have worked with Investec across several of their portfolio businesses and have provided instrumental support throughout.
“Investec offered us a facility that would start relatively small, but which could grow over time” says Barry Lemmers, CFO – APOC Aviation. “Currently, it represents a limited part of our outstanding financing, but this is expected to increase over the next months and years. Multiple financiers were interested to provide APOC with financing to grow the engine and landing gear leasing portfolio. Investec stood out because of their flexibility in the structuring and timing of the deployment of the financing. Our priority is to find suitable landing gears and engines that meet our stringent criteria and fit within the expanding lease portfolio.
“APOC is able to offer customers flexible short- and long-term leasing solutions, so we need a range of assets to meet these varying needs. The Investec facility will be used selectively as we finance each asset based on condition, credit counterparty and lease terms.”
APOC’s reputation as a young dynamic company with a robust track record of financial performance through recent years and its dynamic growth trajectory attracted Investec. APOC is also backed by a strong majority private equity shareholder, Egeria, that is able and willing to provide sustained growth capital.
Both Investec and APOC feel that the two organisations are a very good fit. In these turbulent times for the aviation industry, both parties showed flexibility and pragmatism. Lemmers continues, “Investec is willing to think out of the box and come up with innovative solutions. This approach is greatly appreciated by APOC and we anticipate this will be a long-lasting relationship. Apart from their expertise in financial structuring, the Investec aviation team showed extensive knowledge on the asset types.”
From their perspective Investec likes APOC because they do thing differently.
Lukasz Laski, representing Investec summarised the relationship: “APOC has an engine, landing gear and component team that know their assets and the intricacies of the aviation market. In the relatively short period since their incorporation in 2014 APOC has become a strong and reliable partner for their customers in the aviation industry. They always deliver what they promise, and Investec is pleased to support their asset acquisition programme. We’re impressed by APOC’s professional approach and their proprietary software ‘Alicanto’ which sets the benchmark for fair market values and pricing strategies. We’re confident that we will expand the finance facility in the near future.”