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KKR Commits To Invest $1 Bln With Altavair AirFinance - Quick Facts

Global investment firm KKR & Co. L.P. (KKR) and Altavair AirFinance said Thursday that they have entered into an agreement to form a long-term partnership to pursue the creation of a global portfolio of leased commercial aircraft.

KKR said it will make a $1 billion capital commitment primarily from its credit and infrastructure funds, which may be supplemented with additional commitments over time, to acquire commercial aircraft in partnership with Altavair over the next several years.

Altavair will be KKR's partner for aircraft leasing investments going forward. KKR will also acquire a 50 percent interest in Altavair as part of the long-term partnership.

KKR said it's initial investment will go towards the acquisition of six cargo aircraft on long-term lease with a diverse group of airline counterparties.

"Commercial aircraft are critical, long-lived assets that we've been interested in pursuing for several years. We are excited to partner with Altavair's world class management team to invest in the global aviation market," said Brandon Freiman, Member & Head of North American Infrastructure at KKR.

Formed in 2003, Altavair and its management team have successfully executed multiple commercial aviation leasing and finance strategies during all points within the commercial aviation cycle on behalf of a broad range of domestic and international institutional, insurance and private investors.

Since its inception, Altavair has completed over $8 billion in commercial aircraft lease transactions with over 40 airline customers in 27 countries representing over 200 individual Boeing and Airbus aircraft. Altavair maintains offices in Seattle, London, and Singapore.

KKR was advised by Simpson Thacher & Bartlett, while Altavair was advised by Milbank.

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