Ashland Place has risen to prominence in aviation asset financing since its launch in September 2021. Backed by Davidson Kempner Capital Management (DKCM), the platform has built a diverse aviation loan portfolio and has cultivated a broad customer base. Ashland Place was set up with the specific aim of originating well-structured aviation loans to
quality borrowers.
Today, aviation loan ABS transactions are no longer considered novel, largely due to the market being shaped by the Ashland Place team – one of the pioneers in opening the space in 2023 with APL Finance 2023-1 (APL 2023-1). This was closed only shortly after the concept was first introduced in the aviation finance sector with SALT 2021-1 from Bellinger Asset Management and Stonepeak Partners. That first deal melded established aviation ABS methodology with collateralised loan obligation (CLO) technology to securitise the acquisition of the aviation loan book from National Australia Bank. Apollo used the same outlet to securitise its acquisition of the PK Airfinance loan book with its series of successful loan ABS transactions, PKAir 2024-1 & -2, PKAir 2025-1, -2, -3. However, with APL 2023-1, Ashland Place became the first aviation finance company to issue a loan ABS with a pristine portfolio of aviation asset loans solely originated by the company. And, true to her word, Villa became a repeat issuer in October 2025 with a second loan ABS, APL Finance 2025-1
(APL 2025-1).
The $414.4 million APL 2025-1 loan ABS transaction was substantially oversubscribed on all four tranches, with initial price talk (IPTs) on the A notes at 150 to 160 basis points (bps) tightening before pricing to 135-145 bps and closing at a record +125bps. The APL 2025-1 A notes – rated AA by KBRA – attracted very strong interest from repeat and
new investors.
Ashland Place believes APL 2025-1’s unique collateral pool with the loan facilities being 100% primary origination, 100% sole lender and 100% secured, was a significant advantage and which attracted investor interest. Ashland Place is the servicer on the transaction. The securitisation has four tranches of notes, with the A-tranche through C-tranche receiving investment grade ratings from KBRA.
In an official statement, Villa expressed her pride in issuing the second and largest aviation loan ABS in just under two years since its first ABS transaction, adding that the deal underscored the company’s “deep experience in aviation lending” while the strong demand only serves to encourage her to continue to be active issuers in the aviation
ABS market.
This second loan ABS from Ashland Place was issued during a very different environment and during a busy market for aviation securitisations, which proved attractive for investors to pile into aviation loan paper. Coming to market again in 2025, the experience was very different from the inaugural transaction, as Villa explains in an exclusive interview with Airline Economics.
“When we closed APL 2023-1, the pricing was nowhere near it where it is now because it was a new product and the market was very different,” says Villa. “In 2023, we were introducing a new loan ABS product [versus the more typical lease ABS product], which was unfamiliar to many investors and I walked into some really tough rooms where many investors had lost money on aviation lease ABS during the pandemic. At that time, we weren’t just launching a new product, we were fighting the perception that aviation was too risky. That sentiment has shifted – airlines have recovered, travel is back, and investors are more open to aviation.”
Although the environment today is much more welcoming than 2023 for aviation asset investment in general, the marketplace is crowded and Villa needed to spend more time explaining how Ashland Place is different from competitors such as PK Airfinance and volofin, who have issued in the loan ABS space post-APL 2023-1.
“In 2023, I had to differentiate loan ABS from lease ABS and show why our product was safer,” explains Villa. “Now, I’m differentiating from other loan ABS issuers. Ashland Place loans have a relatively lower LTV compared to other issuers which resonated with the investor base as that is foundational to these structures in any airline dislocation.”
The pandemic provided a hard lesson for lenders with high LTV loans, says Villa. “Covid showed that the lenders that were out with the high LTVs often ended up with the keys back. The weighted average LTV on the Ashland Place loans are targeted to ensure adequate equity in the assets on the part of the borrowers. If you stick to that, the basic laws of economics say that you’re highly unlikely to end up with the aeroplane with these structures. In fact, I never have in
my career.”
Villa also points to the solid structural elements in the Ashland deals that make them cleaner and easier to manage — not least the fact that Ashland Place originates 100% of the loans. “We hold the pen on every document. Investors like that we’re not buying other people’s loans or documents. There’s no complication of inter-creditors, and if there’s a problem, workouts are generally simpler and more streamlined.”
This focus on origination has been a core part of Ashland Place’s unique value proposition since its inception. Maintaining a clean book is central to Villa’s mission to bring well-structured, safer, and more attractive portfolios to market. Ensuring the portfolio is static is another key differentiator, reinforcing the emphasis on transparency and stability that investors value.
“We have continued to pursue a static pool for our ABS issuances. What investors see on day one is what they will have for the duration of the ABS. If there’s any prepayment, it comes out of the structure,” explains Villa.
Other aviation loan ABS structures have more CLO-type structures in their transactions, with reinvestment capabilities where they can put new loans into the book. Villa prefers, and believes investors would rather know exactly what they are buying on Day 1. The oversubscription of APL 2025-1 is testament to that fact.
The APL 2025-1 portfolio marks a shift from the inaugural issuance, with a significantly younger weighted average asset age of five years, compared to ten years in 2023. The portfolio also reflects a more conservative approach to jurisdictional risk, in response to heightened geopolitical uncertainty. Over 70% of the lenders are based in North America, with more than 80% located in North America and Western Europe. “That was by design,” says Villa. “As much as I talk about borrowers having equity in the assets, if they can’t get them out of the jurisdiction – or if there are delays – that safety net kind of falls on its ear. I’d much rather fund an aircraft on lease to a tier-two airline in the US, Canada, or UK than in a more difficult jurisdiction.”
The loans in APL 2025-1 look very similar to the 2023 portfolio, with the same security elements in place, such as maintenance reserve traps and sponsor guarantees, but the underlying assets are newer and the loans have lower LTVs, but with better margins. “On all fronts, this new transaction has been very attractive to investors in our view,” confirms Villa.
As one of only a few pioneer loan ABS transactions, Ashland Place ‘s 2023 offering was subject to what Villa describes as “pioneer lumps” that impacted pricing – notably the fact that the company was a first time issuer in a nascent and untested aviation loan ABS market. Having taken that pioneer pain, Villa and Ashland Place have reaped the benefits of opening a new market with the success of its second issuance, and have paved the way for other alternative lenders to tap into this space, expanding the investor base to the benefit of all.
“When we issued APL 2023-1, the pricing was nowhere near it where it is now because it was a new product and the market environment was very different so we took a lot of what I call pioneer lumps,” shares Villa. “Now this market has opened, with PK Airfinance’s multiple issuances, volofin, and a few more platforms in the intervening years, now you will begin to see more issuers. In 2021, other lenders had insurance money backing them, and Ashland Place was an exception to that. People were very sceptical about our intention to take out our warehouse in the ABS market. Now they are imitating it. We opened the market and took the harder pricing for everyone, but now we are the beneficiary of taking that first leap with the success of our second transaction. The market conditions are better, the industry has recovered, and the investor landscape now views this asset class as an established product.”
Investors now recognise that the aviation loan ABS product is much less risky than an aviation lease ABS, which as Villa explains, should be reflected in the pricing going forward: “All loan ABS tranches – A, B, C, D, and residual – effectively fit within the A note of a typical lease ABS. On a look-through metal basis, if a typical lease ABS has a 70% LTV, my entire deal sits inside that, because underlying loans also start at about 70% LTV, making the effective LTV even lower. For example, the A note on a metal basis is probably in the 40s. Given this structural safety, lease ABS issuers currently price around +150bps, while the latest loan ABS from PKAir priced at +130bps. In my view, that spread isn’t as wide as it should be when you consider the relative risk.”
APL 2025-1 priced at +125bps – so much tighter than even Villa expected, indicating perhaps that the investor base is beginning to understand the risk profile of the aviation loan ABS relative to the more established lease ABS, which is arguably trading on superior volume and historical performance.
Citi served as the sole structuring agent for APL 2025-1, and acted as joint lead bookrunner alongside ATLAS SP Partners, with Morgan Stanley joining as a joint bookrunner. Atlas was the lead on the 2023 transaction, with the former Credit Suisse team that provided the first warehouse facility for the fledgling company. For this latest deal, Villa chose Citi, which provided the second warehouse. “Arguably, we could have chosen any bank to lead our second deal, but I’m a big relationship person, and Citi stepped up with a major warehouse when we were still a nascent company – just like Atlas did in 2023.”
Vinson & Elkins served as legal counsel to Ashland Place, and Milbank served as legal counsel to Citi, ATLAS SP Partners and Morgan Stanley. Pivotal Corporate AMS will serve as Managing Agent.
Ashland Place continues to focus on originating asset-backed loans, and Villa reiterates the company’s ambition to be a perennial issuer of aviation loan ABS transactions. Despite a still quasi-constrained trading environment – marked by ongoing supply chain challenges and sluggish OEM deliveries – Villa remains committed to issuing loans with steely discipline, prioritising liquid assets and strong credits, and refusing to yield to competitive pressures in the aircraft market. “We’d love to be doing more, but we’re perfectly comfortable with the current cadence – though I do hope volumes pick up,” Villa admits. “It’s a challenging trading environment, but we’re not going to pursue deals we don’t believe in. Maintaining manageable LTVs is foundational to our lending approach. When the competitive landscape pushes others to loosen those standards, deals start to drift from where they should be in terms of risk-reward. I’d rather do nothing than commit to a bad deal.”
Ashland Place is pushing ahead with origination and has recently expanded its team in Dublin to help pursue those additional trading opportunities, which are reviving as new deliveries speed up to the large lessors. “We generally have more in the pipeline, and we expect it to continue to be a busy market. We have expanded our origination team to facilitate that expected growth.”
To this end, Sarah Conway has recently joined Ashland Place as a director to strengthen the firm’s global origination capabilities and presence in Europe.
Conway brings more than 16 years of experience in the aviation industry to Ashland Place with deep experience encompassing both aircraft leasing and lending. Most recently, she served as senior director aviation finance at Hamburg Commercial Bank. Prior to that, she served as senior vice president and head of lessor origination, pricing & structuring at Deucalion Aviation.
In her previous role, Conway focused on originating transactions, developing relationships with lessors and managing global banking relationships. Prior to Deucalion, she held senior aviation origination and finance roles at MUFG Bank and DVB Bank, both in London. Conway is also a member of the Board of Directors of the International Society of Transport Aircraft Trading (ISTAT) and an active member on a number of ISTAT committees and initiatives.
“Sarah’s arrival underscores our commitment to expanding Ashland Place’s global reach and deepening our industry relationships across Europe,” said Villa. “Her expertise, successful track record and network of high-calibre contacts in the aviation industry will be critical as we continue to expand.”
“Sarah’s appointment ensures that Ashland Place is better positioned to meet the evolving needs of the industry,” said Greg Feldman, partner, US Corporates at Davidson Kempner. “We look forward to seeing how her addition will support the platform’s growth.”
Based in London, Conway is well-positioned to capitalise on opportunities in this active market. On the announcement of her new role, Conway said that it was an honour to join Ashland Place, adding that she has “long admired what Jennifer and team have built and accomplished in four short years since its inception.”
Conway’s appointment follows a series of strategic milestones for Ashland Place. In the last quarter, the team completed its seventh financing facility for Flight Lease and a four-aircraft transaction with Fortress Investment Group and GOAL Aircraft Leasing.
“I am truly excited to join Ashland Place at such a pivotal moment for the aviation finance industry. Having followed the platform since its inception, I have always admired its commitment to being a reliable lender and a trusted partner for clients,” commented Conway.
She continued: “My vision is to help drive Ashland Place’s next phase of growth by expanding our global client base, maintaining structuring discipline, and enhancing our flexible financing solutions. Over the next 12–18 months, my priorities will focus on deepening relationships across the industry and executing high-quality transactions that support our clients’ evolving needs. I am also grateful to work alongside industry leaders like Jennifer, whose decades of experience and client-centric approach have been instrumental in shaping Ashland Place’s reputation, and Greg, whose strategic vision has positioned the platform as a creative and dependable capital partner. Together, we are committed to delivering innovative solutions and supporting our clients through every market cycle.”
Ashland Place financed Fortress and GOAL’s sale/leaseback of two additional brand new Embraer E195-E2s upon delivery from Embraer and on lease to Canadian regional carrier, Porter Airlines. This follows two other financings announced in July, totalling four transactions through this partnership thus far. Vinson & Elkins served as legal counsel for Ashland Place and Vedder Price represented GOAL on these transactions.
Villa noted that this deal built on the success of previous transactions earlier this year, which she says “highlights the strength of our growing relationship and our shared commitment to supporting high-quality operators and
aviation platforms.”
Looking ahead, Villa remains focused on originating strong aviation loans with top-tier credits. Despite a challenging and competitive market, her team adheres to conservative principles – closing only those deals they are fully comfortable with. While acknowledging the current market “frothiness,” Villa is confident in Ashland Place’s portfolio. The recent enthusiastic response to its latest loan ABS transaction reinforces that confidence and signals strong market support, leaving her optimistic about
the future.