Global Jet Capital hits $3.5bn financing milestone
Global Jet Capital has announced that it has now provided more than $3.5bn in business jet finance.
“It is a big milestone for us,” Vivek Kaushal, CEO, Global Jet Capital, told Corporate Jet Investor. “It is a celebration of more than 200 happy customers and business partners in the business jet ecosystem. It also demonstrates our brand’s longevity.”
Global Jet Capital was first announced at Corporate Jet Investor Miami in 2014. In 2016 it acquired GE Capital’s business jet finance portfolio for $2.5bn – as well as many of GE’s team.
“Early signs for 2023 are strong. We are tracking factors like the interest rate environment and economic growth but are still seeing strong interest,” says Kaushal. “We are also optimistic about countries in Asia reopening after Covid.”
Global Jet Capital offers loans and finance leases, but specialises in operating leases where it owns the aircraft. Kaushal says that the majority of its portfolio are aircraft on operating leases.
“Hitting $3.5bn is validation of our original belief that operating leasing is a structure that fits business aviation well,” says Kaushal. “We have shown that there is demand for it all around the world. Last year we closed landmark operating leases in Singapore and Vietnam, for example, and we are already seeing interest following these.”
Global Jet Capital also offers pre-delivery payment financing. After paying a deposit, new aircraft customers are typically required to make two or three payments up to two years before delivery. Manufacturers use these to pay suppliers such as engine companies. “With backlogs growing we have seen strong interest in pre-delivery payment financing,” says Kaushal.
While he is keen to keep growing the portfolio, he is not looking at growth for the sake of it. He adds: “This is a great milestone, but we will always be focused on quality of transactions and grow at as sensible pace.”