Investec completes first close of aircraft fund

AeroplaneInvestec Aviation Finance has completed the first close of its aircraft fund, Investec Aircraft Syndicate.

The fund will invest $500 million (€391.5 million) in new generation, fuel-efficient aircraft on lease to a number of airlines worldwide.

The firm has the ability to increase the size of the fund and says it is in discussions with various parties looking to invest in its second raising.

The fund seeks a cash yield in the high single digits paid from contracted fixed cash flows, with expected overall returns of mid-teens over five to eight years.

Ramki Sundaram and David Phillips, senior members of Investec’s aviation finance division, manage the portfolio.

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