Aircraft Investment Management

Services

Aircraft Investment Management


FPG Amentum is an independent and dedicated third-party asset and investment manager. Since being founded in 2005 we have invested several US$ billion in modern commercial aircraft. Our core product is cradle-to-grave Asset and Investment Management: From the development of the investment strategy with the equity investor, to the divestment of the aircraft assets. We currently manage aircraft for banks, JOL investors, German KG funds, a Luxembourg domiciled alternative investment aircraft fund, a US based Private Equity investor and an institutional investor based in Asia.

Solution Capabilities


Developing Investment Strategies

FPG Amentum works with its investor customers to develop appropriate tailor-made investment strategies. The choice of target asset types and vintages, lessee profiles, regional diversification, financing and structuring allows for a wide spectrum of risk, return and liquidity profiles to be addressed in target portfolios. Every investor is different and at FPG Amentum we have the experience and capabilities across all aspects of the investment process to tailor investment strategies to match individual customer requirements.

To successfully invest in aircraft assets, we stay on top of developments in the aircraft asset, airline, and financing markets. An important way FPG Amentum sets itself apart is by dedicating significant resources to industry research to quickly pick up on trends and to identify opportunities for its investor customers early on.

Sourcing Assets

FPG Amentum leverages its relationships with airlines, OEMs, lessors, and financial institutions to identify and develop attractive asset sourcing opportunities. FPG Amentum has the full spectrum of capabilities in-house allowing it to manage all aspects of asset sourcing including negotiating a fair price for the asset, performing technical due diligence and assessing maintenance condition, evaluating lessee and asset risk, and taking delivery of assets.

FPG Amentum also has experience with a wider range of asset types than is the case with many lessors. We have invested in narrowbody and widebody aircraft, as well as regional and freighter aircraft. Our management experience includes working with aircraft in all age categories. In addition, we have worked with airlines from the low cost, flag carrier, charter, ACMI and cargo segments worldwide. This breadth of experience gives us the skill to effectively source assets in line with the investment strategy developed with our investor customer and prevailing market conditions.

Obtaining Leverage

FPG Amentum’s finance experts come from major financial institutions and the FPG Amentum team is fully competent in negotiating, closing and managing loan facilities and other debt instruments. In addition, the team is experienced in interest rate and currency hedging.

FPG Amentum continually and proactively assesses opportunities in the debt and capital markets as well as in the export credit markets in order to develop appropriate strategies for leveraging equity investments in the aircraft sector. We also use our observations of trends and developments in the debt markets to make effective asset sourcing decisions that most closely match the risk-return parameters of our investor clients.

Lease Management

FPG Amentum manages all operational functions of lessor SPCs set up to hold the aircraft assets of our investor customers. We manage lessee invoicing and monitor compliance with lease terms including rent payment, maintenance reserve payment, and insurance obligations. Similarly, we administer and monitor compliance of the lessor SPCs with their payment obligations to equity, debt and other parties.

FPG Amentum also actively monitors the technical compliance of the lessee, with periodic technical audits of the lessee including regular inspections of the aircraft and aircraft records. We are also present at significant maintenance events and manage maintenance reserve claims against the lessor.

Our services also include forward looking activities such as credit risk monitoring and evaluation of lessor options under the lease. We also leverage our continuous industry research efforts and market knowledge to proactively develop placement and work-out solutions most closely in line with investor risk-return parameters. For all Irish incorporated SPCs we provide comprehensive management services and directors, qualifying the SPCs as full Irish tax residents including benefits such as the applicability of low corporate tax rate and access to the Irish tax treaty network.

Transition Management

When a lease comes to its end, FPG Amentum manages all aspects of the transition to a new lessee with a view to minimizing downtime and transition costs. We start remarketing the aircraft well before it comes off lease, leveraging our long-standing relationships with the airline community. We manage all commercial aspects of the transition, including any end of lease compensation payments, liaising with the lenders, and tax planning. We negotiate and agree documentation with the new lessee and manage all technical aspects of the transition. The latter includes monitoring of compliance of the out-going lessee with redelivery conditions and the contracting and management of subcontractors such as MROs, CAMOs and flight crew organisations, as we prepare the aircraft for delivery to the new lessee.

It is during unscheduled transitions, i.e. when a lessee defaults, that lessors really have to prove themselves. FPG Amentum looks back on a very strong track record of successful repossessions, including from jurisdictions such as China, India, Indonesia, Nigeria and Russia. FPG Amentum has often been the first lessor to regain control of its assets, a testament to our proven approach to repossessions and to our belief in having all core functions in-house.

Aircraft Divestment

No investment strategy is successful without a plan for monitoring its performance in light of market conditions and without a strategy for divestment. FPG Amentum uses its strong research capabilities and market knowledge to actively and continuously assess divestment options in order to ensure investors take advantage of market opportunities and to ensure they do not stay tied to assets that become unlikely to meet performance expectations. FPG Amentum has considerable experience trading aircraft in the secondary market and has also been active in finding end of life solutions for older aircraft, including selling aircraft to part-out specialists.