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Direct Infrastructure Investment in Aviation Assets- Part 1

Institutional investors are increasingly turning to direct investment in aviation infrastructure and operating companies to enhance their portfolio holdings. Airport infrastructure and aviation service companies have many characteristics that institutional asset managers find compelling—they typically consist of real assets with long lives, high barriers to entry, low risk of sudden disruption and strong cash flows. While dedicated funds of private equity firms and merchant banks have been acquiring assets in this space for many years, pension funds, endowments and family offices are now investing directly in aviation infrastructure. Typical holdings include airport facilities, Fixed Base Operators (FBOs), Maintenance Repair and Overhaul (MRO) and Aircraft Charter and Management (ACM).

Key considerations for aviation infrastructure include:

Professional management—firm specializing in aviation asset management can provide the management and reporting institutional investors require in a less expensive manner that the typical private equity model.
Negotiated transactions—aviation management companies such as Global Aviation Infrastructure can source many acquisitions through negotiated transactions rather than formal sale processes, thereby reducing the average entry price.
Investment Criteria—unlike traditional funds, direct investment using an aviation management company can be more opportunistic with regard to acquisition target size, holding period, etc. This flexibility provides an institutional asset manager greater freedom to choose opportunities without the restrictions of a legacy fund charter.

Global Aviation Infrastructure, LLC (GAI), lead by Steven Levesque of Charleston, SC provides management and advisory services for institutional investors interested in aviation assets such as airport infrastructure, aviation service companies, and aviation infrastructure development. Professional asset managers benefit from GAI’s independence and access to proprietary industry benchmarks. Call today to learn how we can help you maximize the value of your aviation asset holdings.