Global Alternative Asset Manager Acquires Engine Leasing Platform from Warburg Pincus

October 18, 2024 – NEW YORK – Aquila Air Capital (“Aquila”), a leading engine lessor, announced today an investment from funds managed by Wafra Inc. (“Wafra”), a New York-based, global alternative asset manager. Wafra has entered into definitive documentation to acquire the Aquila platform from Warburg Pincus, a global growth investor. As part of the transaction, Wafra will acquire a controlling interest in Aquila and provide substantial capital to support Aquila’s continued growth, furthering its mandate to purchase, sell, finance, and lease aircraft, engines, and other aviation equipment. The transaction is expected to close in Q4 2024, pending receipt of customary regulatory approvals.

“This milestone is a strong endorsement of our team’s hard work and the value we bring to the market. Partnering with Wafra will enable us to accelerate our expansion, introduce new products and services, and broaden our customer base globally.” Post this

Founded in 2021 by Warburg Pincus, CEO Al Wood, and Kepler Hill Capital, Aquila was created to capitalize on a significant market opportunity in building a specialty finance franchise in commercial aerospace, with an initial focus on purchasing, financing, and leasing mid- to late-life aircraft and engines. Over the past three years, Aquila has grown into a full-service leasing platform with in-house origination, lease management, and technical oversight, becoming a trusted partner across the aviation asset value chain, from asset buyers and sellers to operators seeking innovative and timely business solutions.

“Our partnership with Aquila marks a strategic expansion in our infrastructure portfolio. Aquila has built a differentiated business focused on providing in-demand equipment solutions to its global customer base of high-quality airlines,” said Adel Alderbas, Chief Investment Officer, Wafra. Edward Tsai, Managing Director, Wafra, added, “This investment builds on our significant experience in transportation asset leasing and equipment finance, including in addition to aviation, intermodal, railcar, trailer, chassis, and shipping. By leveraging our expertise in transportation and related industries, coupled with flexible long-term capital, we look forward to partnering with Al and the talented Aquila team to enhance the company’s value proposition to customers and to accelerate its next stage of growth.”

“We are deeply grateful to Warburg Pincus for their belief in our vision and for supporting our growth over the last three and a half years,” said Al Wood, CEO of Aquila Air Capital. “This milestone is a strong endorsement of our team’s hard work and the value we bring to the market. Partnering with Wafra will enable us to accelerate our expansion, introduce new products and services, and broaden our customer base globally.”

“Under Al’s leadership, Aquila has become a market-leading aviation leasing and financing platform with unique technical expertise poised for continued growth,” said Dan Zamlong, Managing Director, Warburg Pincus. “By leveraging management’s deep experience in aviation finance and Warburg Pincus’ expertise in specialty finance and aerospace, we were able to build a scaled portfolio of aircraft and engines, providing a critical service to Aquila’s customers. We look forward to seeing the company’s continued growth with Wafra as its partner,” added Eric Friedman, Managing Director, Warburg Pincus.

Aquila will continue to operate as an independent business led by its current management team. The financial terms of the agreement were not disclosed.

Atlas SP Partners, the warehouse finance and securitized products business majority owned by Apollo funds, will provide a credit facility to support the acquisition of Aquila and fund its future growth.

Evercore served as Aquila’s financial advisor, and Kirkland & Ellis LLP provided legal counsel. Sidley Austin LLP served as legal counsel to Wafra.

About Wafra

Wafra is a global alternative investment manager with approximately $28 billion of assets under management across a range of alternative assets, including real assets, real estate, and strategic partnerships. By providing flexible and accretive capital solutions and focusing on long-term partnerships, Wafra aligns and partners with high quality asset owners, companies, and management teams. Headquartered in New York, Wafra has additional offices in London and Bermuda. www.wafra.com

About Aquila Air Capital

Founded in 2021, Aquila Air Capital (“Aquila”) is a specialty finance platform focused on providing aviation asset financing, as well as purchasing and leasing aircraft and engines. Led by a management team with decades of experience in the aerospace and aviation industries, Aquila is a trusted partner to all players in the value chain, from buyers and sellers of assets to operators in need of creative and timely solutions for their critical business needs. www.AquilaAirCapital.com

About Warburg Pincus

Warburg Pincus LLC is a leading global growth investor. The firm has more than $83 billion in assets under management. The firm’s active portfolio of more than 225 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Since its founding in 1966, Warburg Pincus has invested more than $117 billion in over 1,000 companies globally across its private equity, real estate, and capital solutions strategies. Warburg Pincus is one of the most active and successful private equity investors in aerospace and defense. The firm has invested over $3 billion in several aerospace & defense platforms covering multiple areas of the value chain including Accelya, Camp Systems, CPP, Extant Aerospace, Inmarsat, iNRCORE, Quest Global Services, TransDigm, and Wencor Group. As a leader in the financial services sector, the firm has invested over $11 billion across the full spectrum of the financial services landscape, including a significant focus on specialty finance over the last decade. Notable specialty finance investments include Ascentium Capital, AU Financiers, Cango, Exeter Finance, Mariner Finance, Max, Santander Consumer USA, and Triton. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more information, please visit www.warburgpincus.com. Follow us on LinkedIn.

About Kepler Hill Capital

Kepler Hill Capital is a private equity investment firm focused on special situations including asset platforms, turnarounds, structured equity and distressed assets. Kepler Hill has extensive experience investing in the aviation industry.

Contacts

For media enquiries:

Wafra
Prosek Partners
[email protected]

Aquila Air Capital
Al Wood
[email protected]

Source : Businesswire