From our first aviation fund in 1979, 58 public funds have followed, along with 81 private placements and other investment models. Since 2014, we have been offering aviation portfolio funds for institutional investors, implementing an approach which involves purchasing several aircraft for a fund, with the effect of spreading our investors’ risk within the asset class. KGAL Group has close links with Lufthansa via two joint ventures, and these have enabled us to acquire a wealth of expertise along the entire value chain.
KGAL Group currently manages three active institutional aviation portfolio funds with more than 40 aircraft. These include: KGAL APF 1, KGAL APF 3 and KGAL APF 4. Our success is based on a combination of our asset expertise, active management of our funds, and on our financing and structuring ability.
Our profile includes two joint ventures with Deutsche Lufthansa AG: Lufthansa Leasing GmbH and GOAL, German Operating Aircraft Leasing GmbH & Co. KG. We combine the financing and structuring expertise of KGAL GmbH & Co. KG with market knowledge and the technical specialisation of our joint venture partners, thereby ensuring consistent yields from our aircraft investments.
In 1989, Lufthansa Leasing GmbH was founded as the first joint venture between Deutsche Lufthansa AG and KGAL GmbH & Co. KG. The company provides structured financing for aircraft owned by Lufthansa and its subsidiaries. In addition to consultancy work, the focus is also on cross-border leasing structures for aircraft financing, such as Japanese Operating Leases. To date, Lufthansa Leasing GmbH has put together more than 600 aircraft transactions for the Lufthansa Group, with a volume in excess of €15 billion.
GOAL German Operating Aircraft Leasing GmbH & Co. KG was founded in 1998 as a joint venture between KGAL GmbH & Co. KG (60%) and Deutsche Lufthansa AG (40%), and has since concluded transactions for more than 250 aircraft and engines. The current managed portfolio comprises 65 aircraft with an investment volume of US$1.9 billion (as of 20 April 2018), making GOAL one of the largest operating lessors in Germany and among the top 50 lessors worldwide. Making use of GOAL’s in-house asset expertise, marketing talent and global network, KGAL Group has successfully invested in the aviation sector on the basis of well-crafted concepts – as their outstanding track record reflects. Find out more at www.goal-leasing.com
KGAL GmbH & Co. KG is one of the pioneers in aviation funds. Our wealth of asset expertise has enabled us to maintain a leading position in the market over several decades, with the result that our fund structures and active asset management serve as prime examples of how to successfully invest in the aviation sector.
Institutional portfolio funds with marketable passenger aircraft. The fund is already placed and fully invested with an investment volume of around €800 million, offering investors steady distributions from net income, together with an attractive yield. The fund offers a broadly diversified spectrum of investment options across a range of aircraft types and international airlines.
Mutual fund for several marketable Airbus A319 machines. Lessee was easyJet, which has long-established profitability and is, based on passenger numbers, the largest airline in the UK. The fund had forecast 8% p.a. ongoing distributions or withdrawals in the case of a short maturity period. The transaction was successfully completed early, and the actual yield exceeded 16% p.a.
Institutional portfolio funds with marketable passenger aircraft. The Core Aviation Fund located in the placement is a follow-on product from the APF1, and has a planned investment volume of up to around €800 million. This fund also offers steady distributions from net income, together with an attractive yield. The fund diversifies across different aircraft models and international airlines, and therefore enables both type-related and geographical spread across several lessees.
KGAL GmbH & Co. KG has a long track record in the structuring and management of institutional tangible asset investments. Our specialists in the Debt Investments division apply this valuable expertise to develop institutional investment products in the form of asset-backed finance (debt funds) corresponding to the asset classes of aviation, real estate and infrastructure, and manage these on an ongoing basis.
Low-yield government bonds, overheated share markets and intense competition for attractive asset investments are forcing institutional capital investors to broaden the scope of their asset allocation. Private debt can provide the solution.
The global aviation market reported above-average growth over the last 30 years and, in the next 20 years, the global aircraft fleet is expected to double in size. This requires long-term capital that provides institutional investors with attractive investment opportunities through collateralised aircraft financing.
With its debt specialists, long track record in the aviation market, and co-financing agreements with a number of banks with industry experience, KGAL GmbH & Co. KG offers its institutional customers excellent market access. The aviation debt concept is founded on clearly defined investment criteria, broad diversification, and a best-practice approach throughout, from managing the selection through to repayment of individual aircraft financing.