Direct aviation infrastructure investment through professional management is a strategy with proven results. Since 2001 institutional investors have been investing win aviation infrastructure and have received at least infrastructure level returns and in come case buyout level returns. These institutional investors include private equity firms, family offices, foundations, and endowments.
While infrastructure as an asset class has received growing interest and investment over the last ten years, the large capital requirements have prevented smaller institutional investors from benefitting from the opportunity. Airport and aviation operations related infrastructure in particular is both capital intensive and highly regulated, thereby requiring professional management throughout the asset life cycle.
There are many segments of attractive aviation infrastructure opportunities, including on-airport aviation infrastructure development, aviation infrastructure management and aviation services such as Fixed Base Operations (FBO), Maintenance Repair & Overhaul (MRO) and Aircraft Charter and Management (ACM). These segments provide essential services for airport and aircraft operations, yet they enjoy infrastructure characteristics: real assets with long lives, high barriers to entry and low risk of disruption. These services businesses have a resilient earnings model with recurring demand and stable cash flows across various economic cycles.
The difficulty for many smaller institutional investors is the point of entry. The value of aviation infrastructure and aviation services operations has steadily increased due to the scarcity of airport land and recent consolidation. The size of dedicated infrastructure funds often exceeds $10 billion per fund in order to make the required investments without risk concentrations.
The solution lies in leveraging professional management for FBO management services, MRO management services, and airport infrastructure management. This structure offers access to compelling assets without the high fees charged by private equity firms. Management companies with an experienced management team and proven track record can provide turn key platforms for aviation related infrastructure and operational assets. The professionals at Global Aviation Infrastructure have a long history of driving value for institutional investors and scaling aviation platforms through varying economic market conditions.
Global Aviation Infrastructure is a leading aviation management company which provides Fixed Base Operation (FBO), Maintenance Repair and Overhaul (MRO), Aircraft Charter and Management (ACM), and aviation infrastructure management for aviation asset owners, corporations, airport sponsors, private equity firms, family offices and financial institutions. For more information, please visit www.aviationinfrastructure.com.