Increased support from institutional investors has led the Investec Global Aircraft fund to more than double the size of its portfolio to $1 billion in just 12 months.
The capital raised from new investors has been used to purchase 12 narrow bodied commercial aircraft from GE Capital Aviation Services, which will be leased in the long-term to top tier international airlines.
New investors in the fund include AMP Capital’s Future Directions fund, the Australian Catholic Superannuation and Retirement fund, Health Industry Plan Superannuation fund and MCG Wealth.
The fund’s executive, David Phillips, said recognition from institutional investors of aircraft leasing as a genuine alternative asset class had resulted in strong growth, with the fund reaching $1 billion within its first three years.
“Our goal now is to continue to grow the portfolio, with a target of over $3 billion within the medium term,” he said.
