Avenue Capital to Seek $1 Billion For Aircraft Leasing

(Bloomberg) -- Avenue Capital Management is in talks with investors to raise as much as $1 billion for the purchase of aircraft to boost its leasing business, according to a person with knowledge of the matter.

The New York-based investment firm led by Marc Lasry expects to raise the funds over the next three months to buy up to 50 planes, said the person, who asked not to be identified because the information is private.

The latest drive to raise cash would add to Avenue Capital’s war chest for aircraft. The company has already invested in narrow-body and wide-body jets and leases them to airlines, the person said.

Hedge and private equity funds are increasingly putting money in the aircraft leasing business because interest rates are low and the assets can be transferred to different carriers.

Avenue Capital declined to comment.

The company, a specialist in distressed debt and special situations, managed about $10.4 billion of assets at the end of September, according to its website.

--With assistance from Nishant Kumar.

To contact the reporter on this story: Layan Odeh in Dubai at lodeh3@bloomberg.net

To contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, Tara Patel, John Bowker

©2019 Bloomberg L.P.