Partners Group, a global private markets firm, has invested USD 250 million as the sole lead investor in a continuation vehicle established by Avenue Capital Group to acquire its global commercial aviation leasing portfolio, according to a joint announcement on June 30, 2026. The transaction, one of the largest transportation deals by Partners Group's infrastructure secondaries strategy to date, involves an approximately USD 360 million multi-asset continuation vehicle. Avenue Capital Group's aviation team will continue managing the assets.
The portfolio comprises 69 mid-life aviation projects, including narrowbody aircraft, widebody aircraft, and regional jets, assembled over the past decade. The lessee base is diversified across 30 airlines in Asia, Western Europe, and North America. The majority of cash flows are contracted, providing predictable income, and the portfolio is structured to maximize asset values at contract end through re-leases, sales, or disassembly.
The commercial aviation leasing market benefits from several tailwinds, including a structural undersupply of new aircraft due to production delays, shifting industry dependence to mid-life aircraft and spare parts. Additionally, aircraft engines are increasingly used for alternative industrial applications, underpinning demand for legacy engines and supporting residual values. Jeremy Semble, Head of Infrastructure Partnership Investments Americas at Partners Group, stated, "Aircraft leasing is a growing space within the infrastructure asset class. The Portfolio is asset-heavy with contracted cash flows and high barriers to entry, reflecting significant capex requirements and maintenance needs. This makes it a great fit for our infrastructure secondaries strategy."
Marc Lasry, Co-Founder and CEO of Avenue Capital Group, commented, "This new continuation vehicle provided our existing limited partners with a compelling liquidity option and has allowed us to once again partner with Partners Group, providing them with exposure to our strong portfolio of aviation projects assembled over the past decade." The portfolio is managed by Avenue's aviation team led by Senior Portfolio Manager Shawn Foley.
Partners Group's Infrastructure Partnership Investments business focuses on LP-led portfolios, GP-led investments, and complex situations globally. The firm has completed over 70 infrastructure secondaries transactions since 2006 and is currently raising its latest infrastructure secondaries program. Partners Group was advised by Ropes & Gray, while Avenue Capital Group was advised by Latham & Watkins and Perella Weinberg Partners.
Partners Group is one of the largest firms in the global private markets industry, with around 2,000 professionals and over USD 185 billion in assets under management. For more information, visit www.partnersgroup.com. Avenue Capital Group is a global investment firm with approximately USD 9.2 billion in assets under management, primarily focused on specialty lending and opportunistic credit. View the original release on www.newmediawire.com.
