Mercuria Investment and Airborne Capital will jointly establish and operate a new open-ended aircraft fund called MACH OE.
The target asset size is around 150bn Japanese yen ($945 million).
The Development Bank of Japan is expected to participate in MACHE OE as an anchor investor, with the fund expected to be supported by institutional investors such as financial institutions, pension funds, business corporations, and educational institutions.
Daiwa JPI Alternative Investments (part of the Daiwa Securities Group) will support the fund with investor introductions and operational services.
MACH OE will be structured as an open-ended fund, and will be the first open-ended fund of its kind by a Japan-based asset manager in the aircraft fund space, Mercuria said.
Both companies have jointly offered closed-ended aircraft funds structured with portfolios suitable for Japanese investors.
Unlike close-ended funds, this new open-ended MACHE OE will allow investors to subscribe and redeem during the fund's life, which provides greater flexibility.
The fund aims to generate stable returns by investing in popular aircraft types leased to high-quality airlines.