Magnetic MRO and Crestline Investors Establish Joint Venture for Aviation Assets

July 25, 2017
The newly established company, Magnetic Parts Trading Limited, will focus on acquiring aircrafts and engines for immediate part-out, or short term lease and subsequent part-out.

Magnetic MRO, a Total Technical Care MRO provider, and Crestline Investors, a U.S.-based institutional alternative asset manager, have established a joint venture for aviation asset investments.

The newly established company, Magnetic Parts Trading Limited, will focus on acquiring aircrafts and engines for immediate part-out, or short term lease and subsequent part-out.

Crestline Investors will furnish Magnetic Parts Trading Limited with the majority of its capital needs, while Magnetic MRO will focus on project managing the investment, part-out and value realisation process.

Magnetic Parts Trading Limited will aim to invest in the most popular narrowbody aircrafts, such as the A320 and B737 families and their corresponding engines. The agreed capital structure will allow for immediate investments into a significant number of new generation aircrafts and engines, as well as the flexibility to purchase fleets of aircrafts, or assets with remaining leases attached.

“Strategically this is a huge step for Magnetic MRO, getting us firmly into the aviation asset management area, which is yet another way to differentiate from the low-cost, labour intensive regional MROs,“ said Jonas Butautis, Chairman of Magnetic MRO. "The joint venture with Crestline Investors was formed as a result of a strategic search for similar-minded global financial partners, who share the views on opportunities to be gained through disciplined investments into mid life aviation assets".

Michael Guy, CIO of Crestline Europe, LLP, added: "We are delighted to team up with Magnetic MRO. The combination of their excellent track record, deep market knowledge and the backing of hard assets makes our joint venture a great opportunity for the deployment of our investors’ capital.“

Magnetic Parts Trading Limited will aim for the first investment projects to be executed in Q3 2017.

Crestline Investors, Inc., founded in 1997 and based in Fort Worth, Texas, USA, is an institutional alternative investment management firm. Crestline specializes in credit and opportunistic investments, including financing and restructuring solutions for mature private equity funds. In addition, the firm manages a multi-PM equity market-neutral hedge fund, and provides Beta and Hedging Solutions for Institutional clients. Headquartered in Fort Worth, Texas, the company maintains affiliate offices in New York City, Chicago, London, Toronto and Tokyo. For more information, please visit www.crestlineinvestors.com.

Magnetic MRO is an EASA and FAA certified Total Technical Care Organization headquartered in Tallinn, Estonia. The company has two decades of MRO experience along with an established reputation regarding technological advancements and innovative solutions in integrated MRO services. It offers a wide range of specialized services varying from engines management to line and base maintenance, from components to landing gear solutions, from engineering services and asset management to interior solutions and full aircraft painting. The newly launched EngineStands24.com project serves as one-stop-shop global centre for aircraft Engine Stands leasing and trading.