Carlyle makes $2.3B+ bet on private air travel
March 30, 2021
The Carlyle Group has tapped its aviation investing division to buy a struggling aircraft financier, marking the latest example of an investor betting that air travel will bounce back in 2021.
- The firm has agreed to acquire Fly Leasing in a deal that values the aircraft leasing company at more than $2.3 billion, including debt. Carlyle paid $17.05 per share in cash for the Ireland-based company, marking a roughly 29% premium to the company's Friday closing price and a 43% premium to its average share price over the past 30 trading days.
- Funds for the investment will come via Carlyle Aviation Partners, which has grown to more than $6 billion in assets under management since Carlyle launched the unit in 2002. The firm raised around $900 million for the unit's latest flagship fund, according to a Buyouts report.
- The deal caps an active few weeks for aircraft deals. Earlier this month, General Electric sold its aircraft leasing business to rival AerCap for roughly $30 billion.
- Of the latest deal, Fly Leasing CEO Colm Barrington said in a statement: "This transaction represents strong value for Fly shareholders at a time when airlines are facing an extremely difficult environment and smaller aircraft lessors are disadvantaged in the debt markets."