Apollo Aviation closes 2015 with approximately 25% growth in AUM

Dino D'Amore
By Dino D'Amore January 28, 2016 21:48

Apollo Aviation closes 2015 with approximately 25% growth in AUM

Apollo Aviation Group, as of December 31, 2015, has purchased (including contracted to purchase) 31 aircraft and two engines in the preceding twelve months.

All the flight equipment purchased are in-production models and include aircraft from the Airbus A320ceo family and Boeing 737-800s. Two-thirds of the flight equipment that was purchased came with leases attached.

The most recent acquisitions bring Apollo Aviation’s total managed fleet to 80 aircraft and 55 engines which are on lease to airlines in the Americas, Europe and Asia.  Additionally, Apollo Aviation now manages 58 airframes and 146 engines consigned for part-out.

William Hoffman, Apollo Aviation’s Chairman, explained, “With the number of airplanes in service anticipated to double from 2014 to 2034[1], demand for aircraft and replacement parts is set to increase. Our expertise in managing aviation assets from the mid- to end-of-life cycle means we are well positioned to help airlines’ manage their fleet requirements through this period of significant growth.”

In September 2015, Apollo Aviation closed its third aviation fund, SASOF III, raising $833[2] million, in excess of the $750 million target.

During the year, the firm’s total assets under management (which includes invested capital, indebtedness and available capital) grew by approximately 25% to $2.5 billion.

Also in 2015, Apollo Aviation realized a portion of its aviation assets through Apollo Aviation Securitization Equity Trust 2014-1’s issuance of Asset Backed Secured Series C Term Loan for $60 million.  Other previous tranches of term loans closed oversubscribed in November 2014 for $556.3 million bringing the aggregate total to $616.3 million.

“We continue to find opportunities to deploy capital in our target asset types – mid-life in production aircraft, primarily narrow bodies. As we enter our 15th year, our reputation in the market continues to lead to more opportunities as counterparties focus on execution risk and actively seek partners with a track record and committed capital,” continued Mr. Hoffman.

Dino D'Amore
By Dino D'Amore January 28, 2016 21:48