Abu Dhabi, United Arab Emirates: Sirius Aviation Capital Holdings Limited (“Sirius”), a global aircraft asset manager head quartered in Abu Dhabi Global Market (“ADGM”), announced the acquisition of a portfolio of five (5) single-aisle, mid-life aircraft increasing total aircraft under management to 17 valued circa. $500m.
The portfolio is comprised of aircraft owned and managed by SMBC Aviation Capital (the “Acquisition”). Sirius has entered into a joint venture with Carolous Aviation Leasing LLC, a portfolio company of Corrum Capital Management LLC (a US-based investment firm) to acquire the aircraft.
Sirius’ share of the joint venture was funded via its commitment from its anchor investor, Abu Dhabi Catalyst Partners (“ADCP”). ADCP is a joint venture between Mubadala Investment Company P.J.S.C. (a sovereign investor owned by the Government of Abu Dhabi and Alpha Wave Ventures (a US investment company).
The Acquisition underpins Sirius’ investment strategy of acquiring in-demand, single-aisle, mid-life aircraft that are on lease to strong airline credits globally.
Edward Coughlan, Chief Commercial Officer & Deputy CEO of Sirius commented on the transaction:
“We are extremely pleased to have grown our relationship with Corrum Capital by acquiring these aircraft on lease to top tier airline credits availing of the attractive returns available in mid-life single aisle aircraft leasing. This brings the total aircraft acquired with Corrum Capital to 10. We look forward to further extending our relationship with Corrum over the coming years by leveraging our mutual industry relations.”
The aircraft portfolio is a mix of in-demand Boeing 737s and Airbus A320s that are leased to best-in-class airline credits including Iberia, Peach (a subsidiary of Al Nippon Airways), Sun Express (JV between Lufthansa & Turkish Airlines), and Volaris.
Jason Cipriani, Co-Managing Partner at Corrum Capital commented on the transaction:
“We are pleased to expand upon our successful relationship with Sirius via the acquisition of these aircraft. The strategy of the joint venture is consistent with our focus on mid-life narrowbody aircraft on lease to high quality airlines globally. Sirius has a highly experienced team, and we look forward to a continued strong relationship.”
Barry Flannery, Chief Commercial Officer, SMBC Aviation Capital commented on the transaction:
“We are pleased to have concluded this deal with Sirius Aviation Capital and we look forward to further developing our trading partnership with Sirius as they continue to build their fleet.”
Separately, Sirius announces the purchase of two further aircraft, an Airbus A321 on lease to ANA and a A320 on lease to Wizz Air. The aircraft were acquired from an undisclosed Japanese lessor.
About Sirius Aviation Capital
Sirius Aviation Capital Holdings Limited is a global aircraft lessor based in ADGM. Sirius deploys innovative strategies in the financing and acquisition of aircraft, offering investors attractive, risk-adjusted, stable, and transparent returns. Sirius primarily targets opportunities in mid-life short-haul aircraft.
Sirius currently has 17 single aisle (mid-life) aircraft under management valued at circa. $500m (including the portfolio of five (5) aircraft acquired from SMBC). To acquire these aircraft Sirius has partnered with 3 other equity investors (Corrum Capital, HPS, and a New York based investment fund), in addition to its anchor equity investor ADCP.
About Corrum Capital Management LLC
Corrum Capital Management LLC is an independent, private investment firm that takes an active and asset-level approach to cashflow-oriented investing, with an emphasis on downside protection, low market correlation and diversifying characteristics. Corrum Capital currently has active investments in multiple sectors within commercial aviation and asset and collateral-backed lending, including lending to the sports and entertainment industries.
About Abu Dhabi Catalyst Partners
Abu Dhabi Catalyst Partners is a joint venture between Mubadala Investment Company, based in Abu Dhabi, and Alpha Wave Ventures based in New York City. ADCP was established in April 2019 with a dual mandate to achieve financial returns while also contributing to the overall development of the ADGM. ADCP seek to partner with top-tier investment firms and industry leading businesses who would benefit from developing a meaningful and sustainable presence in the ADGM.