Partners Group Invests $250 Million in Avenue Capital Group's Aviation Leasing Portfolio

Partners Group, a global private markets firm, has invested USD 250 million as the sole lead investor in a continuation vehicle established by Avenue Capital Group to acquire the latter's global commercial aviation leasing portfolio. The transaction, announced June 30, 2026, is one of the largest transportation deals in Partners Group's infrastructure secondaries strategy to date.

The portfolio comprises 69 aviation projects assembled over the past decade, including narrowbody aircraft, widebody aircraft, and regional jets. The lessee base is diversified across 30 airlines spanning Asia, Western Europe, and North America. According to the announcement, the majority of cash flows from the portfolio are contracted, providing stable and predictable income. The portfolio is also structured to maximize asset values at the end of contracts through re-leases, aircraft sales, or disassembly.

Partners Group's investment is part of an approximately USD 360 million multi-asset continuation vehicle. Avenue Capital Group's aviation team will continue to manage the assets. Jeremy Semble, Head of Infrastructure Partnership Investments Americas at Partners Group, stated: "Aircraft leasing is a growing space within the infrastructure asset class. The Portfolio is asset-heavy with contracted cash flows and high barriers to entry, reflecting significant capex requirements and maintenance needs. This makes it a great fit for our infrastructure secondaries strategy, where we look to provide investors with diversified exposure to sectors with resilient demand and strong growth potential."

The commercial aviation leasing market benefits from several tailwinds, including a structural undersupply of new aircraft due to production delays, which is shifting industry dependence to mid-life aircraft and spare parts. Additionally, aircraft engines are increasingly being used for alternative industrial uses, underpinning demand for legacy engines, supporting residual values, and tightening supply dynamics.

Marc Lasry, Co-Founder and CEO of Avenue Capital Group, commented: "This new continuation vehicle provided our existing limited partners with a compelling liquidity option and has allowed us to once again partner with Partners Group via a continuation vehicle, providing them with exposure to our strong portfolio of aviation projects that we have assembled over the past decade."

For Texas, this investment underscores the state's role as a hub for aviation and infrastructure investment. The portfolio's diversification across geographies and aircraft types provides stable returns, which could influence similar investment strategies in Texas-based aviation assets. As production delays persist, mid-life aircraft demand is expected to remain strong, potentially boosting the value of existing fleets and related maintenance services in the region.

Partners Group's Infrastructure Partnership Investments business focuses on LP-led portfolios, GP-led investments, and complex situations globally. The firm has completed over 70 infrastructure secondaries transactions since 2006 and is currently raising its latest infrastructure secondaries program. Partners Group was advised by Ropes & Gray, while Avenue Capital Group was advised by Latham & Watkins and Perella Weinberg Partners.

For more information, visit Partners Group or NewMediaWire.