BBAM raises $881 million for Incline Aviation I; gains new investor

Eleanor Steed
By Eleanor Steed September 5, 2017 16:06

BBAM raises $881 million for Incline Aviation I; gains new investor

BBAM Limited Partnership (BBAM) has closed Incline Aviation I, a fund dedicated to investing in leased commercial jet aircraft, after raising $881 million.

“We believe Incline to be the largest fund of its kind, and its success speaks to the emergence of leased commercial jet aircraft as a bona fide asset class,” said Steve Zissis, BBAM’s Chairman and Chief Executive Officer.

“Incline’s investors are all leaders and innovators in their respective fields, and we are grateful to have received such strong support. We look forward to partnering with them for years to come,” added Wesley Dick, Senior Vice President and BBAM’s Head of Capital Markets.

BBAM surpassed its initial target of $750 million, raising capital commitments from limited partners, including some of the world’s largest public employee pension plans and sovereign wealth funds.

“The high quality of Incline’s investor base validates BBAM’s track record and the vision of aircraft as an asset class that Steve and the BBAM team pioneered decades ago,” commented Tawfiq Popatia, Managing Director with Onex Corporation and a member of BBAM’s board of directors.

Meanwhile, GIC, Singapore’s sovereign wealth fund, through its affiliates, has agreed to acquire a c. 30% interest in BBAM. The transaction is expected to close by September 30, 2017, subject to certain conditions and approvals.

GIC will acquire its interest in BBAM through partial sales by the company’s two existing shareholders, BBAM’s management team and the Onex Group. Following the transaction, all three parties will assume minority joint ownership of the company.

“GIC is among the industry’s most sophisticated investors and we welcome its interest in BBAM,” said Zissis. “We’ve been deliberate in our choice of partner and are excited for this next chapter in our history.”

Arjun Khullar, Head of Integrated Strategies Group at GIC, said, “BBAM is a remarkable platform built upon a 30-year joint venture with Nomura Babcock & Brown. It has expanded through its founding and ongoing management of FLY, and Incline. As a long-term investor, we believe it is a unique opportunity to invest in the aircraft leasing sector which has strong growth potential.”

“GIC’s participation in BBAM is a strong endorsement of the asset management model that BBAM pioneered more than two decades ago and the investment returns realized on assets managed by BBAM over that period,” said Popatia. “Leased commercial jet aircraft are widely accepted as a bona fide asset class today and much of that can be traced back to the efforts of Steve and his team.”

Eleanor Steed
By Eleanor Steed September 5, 2017 16:06