Magnetic MRO, a total technical care MRO provider, and Crestline Investors, a U.S.-based institutional alternative asset manager, have established a joint venture for aviation asset investments. The newly established company, Magnetic Parts Trading Limited, will focus on acquiring aircraft and engines for immediate part-out, or short-term lease and subsequent part-out.
Crestline Investors will furnish Magnetic Parts Trading Limited with the majority of its capital needs, while Magnetic MRO will focus on project managing the investment, part-out and the value realization process.
Magnetic Parts Trading Limited will aim to invest in the most popular narrow-body aircraft, such as the A320 and B737 families and their corresponding engines. The agreed capital structure will allow for immediate investments into a significant number of new generation aircraft and engines, as well as the flexibility to purchase fleets of aircraft or assets with remaining leases attached.
“Strategically this is a huge step for Magnetic MRO, getting us firmly into the aviation asset management area, which is yet another way to differentiate us from the low-cost, labor-intensive regional MROs,” said Jonas Butautis, chairman of Magnetic MRO. “The joint venture with Crestline Investors was formed as a result of a strategic search for similar-minded global financial partners who share the views on opportunities to be gained through disciplined investments into mid-life aviation assets.”
Michael Guy, CIO of Crestline Europe, LLP, added, “We are delighted to team up with Magnetic MRO. The combination of their excellent track record, deep market knowledge and the backing of hard assets makes our joint venture a great opportunity for the deployment of our investors’ capital.”
Magnetic Parts Trading Limited will aim for the first investment projects to be executed in Q3 2017.