SinglePoint Finance

SinglePoint Finance, owned by private equity firm Acorn Growth Companies, is one of the newest entrants to business jet finance. Targeting smaller deals for single engine, light business jet, turboprops and older aircraft, the private equity-backed lender, led by Timothy Wilson, is targeting a distinct niche.

Our guide

AGC Finance is not just new. It is very different to other lenders. First, it is owned by Acorn Growth Companies, an Oklahoma based private equity firm, and not a bank. Second, it is deliberately targeting smaller deals – and it likes complicated ones – and, third, it likes older aircraft.

“Banks may be coming back to aircraft finance but few are targeting smaller deals,” says Timothy Wilson, president, AGC Finance Group. “We think we can make a difference here.”

Most of AGC Finance’s deals are likely to be between $3 million and $5 million but it will consider transactions as small as $500,000.Apart from deal size and the fact that AGC Finance is only interested in US registered aircraft – and this may change after the first year of business – it does not have fixed lending rules. Instead Wilson says they will consider each deal on its merits.

“We don’t have lots of boxes that have to be ticked,” he says. “We will look at unique deals – such as ones where cash flows may be complicated but where the asset may be well valued. We will consider older aircraft and all types.”

Wilson says they are happy to work with individuals as well as corporates. It will offer both operating and capital leases and loans he expects to close more leases to start with but does not have a set policy.

SinglePoint Finance expects to close its first deal by the end of 2010 – which is quick considering that it only launched at the 2010 National Business Aviation Association in October 2010. He says they are looking to grow the portfolio quickly. Within a few years Wilson believes the portfolio could get to between $100 million and $200 million over the next three years. Acorn may eventually look for debt to leverage the portfolio but does not need to at the start. Wilson says they will be hiring more people soon.

Acorn Growth Companies is a private equity firm that only invests in aerospace and defence. Under the operating brand AGC Aerospace & Defense, the company’s portfolio includes: maintenance company Valair Aviation; Commuter Air Technology, which offers upgrades for King Air aircraft and the C-12 military version; two composite companies; and four IT and logistics companies. AGC is split into four groups: composites, integrated defense, services and finance.

The AGC Finance Group, which is headed by Wilson, includes SinglePoint a general aviation finance company, and Aircraft Logistics Group, which financed a number of special mission aircraft for the US army and which closed its first commercial aircraft engine leasing transaction in August 2010.

Wilson says that they will be able to call on technical experts at other AGC groups, when needed, and may also get referrals particularly from Commuter Air Technology. At the end of deals it may teardown or convert aircraft as well as selling them.

“We truly focus on the asset. If we are happy with the aircraft and its value that goes a long way towards the deal,” says Wilson. Having worked at various banks, including M&I Marshall & Ilsely Bank and Commerce Bank, as well as Cessna Finance, he believes that AGC can offer something very different.

“We are happy to look at small deals and one-off transactions. We can do good deals for us and our customers, that would not necessarily make sense for banks as one-offs,” he adds. “We don’t have boxes.”