21st March 2017, Fort Worth, TX - Analysis(1) from Global Jet Capital, a global provider of financing solutions for corporate aircraft, suggests that 283 medium and large business jets worth an estimated $9.1 billion could be delivered to Texas between now and 2025.
Global Jet Capital, which has over $1 billion to lend to clients purchasing business jets, says the bulk of these purchases will be based on leases and loans. The company currently finances over 300 business aircraft for clients.
The company’s research reveals that Texas has around 410 midsize, 445 heavy business jets and 16 jet airliners, which is approximately 11% of the total for the USA as a whole(2). In fact, the state’s midsize, heavy and jet airliner business aviation fleet, some 871 aircraft, ranks it as the second largest fleet in the world – ahead of Mexico (611 aircraft), China (363) and Canada (347) – and only behind the US as a whole (7,591).
Global Jet Capital is attending the NBAA Regional Forum in Fort Worth on 23 March. The event will see some 2,500 business aviation professionals come together, with attendees from across central and southern US and beyond.
Greg Babcock, Vice President Sales, Central USA, said: “Texas has the largest fleet of mid and heavy sized jets in the US. Over one third of the aircraft delivered to Texan customers in the last five years have been mid to heavy and this trend is likely to continue.
“We specialize in funding the purchase of mid to heavy private jets, and these typically cost anywhere between $10 million and $75 million each. Up to 80% of the funding is sourced through external financing and with as many as 252 of these aircraft potentially being delivered to Texas between now and 2025, the market here is one of our top priorities.”
Global Jet Capital launched in 2014 and it is capitalized by three global investment firms – GSO Capital Partners, a Blackstone company in partnership with Franklin Square Capital Partners*; The Carlyle Group; and AE Industrial Partners. In January 2016 Global Jet Capital completed the purchase of GE’s corporate aircraft lease and loan book in the Americas.
The company’s current management team and executive committee is composed of leaders from business jet manufacturers, maintenance and service providers and leading financial institutions who have served the private aircraft industry for a combined 200-plus years and have completed over 3,500 aircraft transactions.
(1) Bombardier Business Aircraft Market Forecast 2016 – 2025
(2) Global Jet Capital analysis of Bombardier Business Aircraft Market Forecast 2016 – 2025 and JetNet
Global Jet Capital
With $2.5 billion in assets under management and the additional current committed capacity to lend $1 billion, Global Jet Capital provides financing solutions for the private aircraft market. The company is capitalized by world-class private investors with expertise in the global aviation industry: GSO Capital Partners, a Blackstone company, in partnership with FS Investments, The Carlyle Group and AE Industrial Partners. The Global Jet Capital management team has served the private aircraft industry for a combined 200-plus years and has completed over 3,500 aircraft transactions. The company has the expertise, financial strength, industry relationships and infrastructure necessary to offer a variety of flexible financing solutions at the speed the market requires. www.globaljetcapital.com
GSO Capital Partners and FS Investments
GSO Capital Partners, with approximately $89 billion in assets under management, is the credit platform of The Blackstone Group, a leading global institutional alternative asset manager, with assets under management of over $360 billion*. FS Investments, formerly Franklin Square Capital Partners, is a leading asset manager that designs alternative investments, including six funds sub-advised by GSO or its affiliates representing over $18 billion in assets under management as of June 30, 2016.www.blackstone.com/gso
* As of September 30, 2016
The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $176 billion of assets under management across 128 funds and 170 fund of funds vehicles as of June 30, 2016. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,650 people in 35 offices across six continents. www.carlyle.com
AE Industrial Partners
AE Industrial Partners is a private equity investment company founded in 1998, by David Rowe and his late father, aviation pioneer Brian Rowe, to make direct investments in aerospace, power generation and specialty industrial companies. Today AE Industrial is led by 11 partners with each having an average of over 30 years of relevant operating and direct investment experience. AE Industrial is focused on investing in precision component manufacturing, distribution, MRO (maintenance, repair and overhaul) and industrial service-based businesses that are strategically important to their market places. AE Industrial has invested in over 30 companies including: Aviall, Dynamic Precision Group, Grand Prairie Accessory Services, Moeller Aerospace, Landmark Aviation, Kellstrom Materials and Belcan Corporation.
www.aeroequity.com
