KKR launches AV AirFinance and acquires CIT loan portfolio
By Michael Dabaie
KKR & Co. announced the launch of AV AirFinance Ltd., a commercial aviation loan service created by a team of industry professionals in collaboration with KKR.
Investment firm KKR said it and AV AirFinance had agreed to purchase a nearly $ 800 million portfolio of aviation loans from CIT Group Inc., including more than 50 loans for around 60 aircraft. commercial. The loans in the portfolio have an average yield of around 10% and an average remaining term of around four years.
AV AirFinance is led by CEO Siggi Kristinsson, who recently co-founded and served as CEO of Volito Aviation Services AB, a company providing debt origination and advisory services to Goldman Sachs and other financial institutions. .
The acquisition of the portfolio from CIT is financed by separate accounts managed by KKR.
CIT said the majority of the loans have been transferred and the remaining amount is expected to be completed by the end of the second quarter of 2021. At the end of the second quarter of 2021, CIT said it will have completely terminated its aircraft lending activities.
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