New mid-life lessor emerges with $1 billion to spend on older aircraft
June 27, 2025
Private credit is taking flight. Monroe Capital and AIP Capital have teamed up on a new $1 billion venture to acquire a global portfolio of mid-life commercial aircraft on long-term lease.
Announced June 27, the deal brings together Monroe’s deep roots in asset-based private credit and AIP’s growing presence in aviation asset management. AIP will act as servicer, overseeing the day-to-day management of the aircraft portfolio.
Monroe, which manages over $17 billion in assets, is making its first foray into aviation. “This venture reflects our strategy of aligning with experienced operators in sectors with strong asset fundamentals,” said Aaron Peck, Co-Head of Alternative Credit Solutions at Monroe.
The venture has already secured a $500 million senior secured warehouse facility, backed by Deutsche Bank and Fifth Third Bank. This initial war chest will support acquisitions as the team begins to assemble its fleet.
Unlike the high-profile leasing giants focused on brand-new jets, Monroe and AIP are going after a different opportunity: mid-life aircraft, leased to airlines with solid operating histories but limited access to fresh capital.
The rising popularity of the mid-life lessor
With new aircraft deliveries delayed, airlines around the world are increasingly turning to older jets to plug capacity gaps. Narrowbodies like the Boeing 737-800 and Airbus A320ceo remain in demand, and offer more attractive lease yields than newer models with high purchase prices.
In 2024, IATA declared that 60% of the world’s aircraft fleet was leased, showing a stark rise in popularity from 2.4% back in 1980. In Europe, Latin America, and Asia, the share of leased aircraft is close to 70% of the total fleet.
For context, $1 billion in aircraft assets could translate to a fleet of roughly 40 to 60 mid-life aircraft, depending on age and type. That positions the venture somewhere in the middle tier of global lessors; smaller than giants like AerCap or SMBC, but substantial enough to compete in secondary lease markets.
Cirium recently noted that mid-life aircraft are having a renaissance, particularly for investors seeking steady, cash-generating assets with built-in residual value. The aircraft involved may be older, but their leases are often long-term and backed by credible operators.
“Pre-owned aircraft are becoming vital for operators facing delivery delays and supply chain issues,” Jim Sorokan, VP Sales at Jetcraft Commercial, told Aerospace Global News. “We’ve seen a shift in purchase agreement terms, with carriers increasingly seeking longer term solutions.”
As airline demand continues to outstrip new aircraft supply, this won’t be the last time Wall Street comes sniffing around the tarmac.
