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. This provides additional stability, especially in turbulent market situations such as we are currently experiencing.
Oil crisis, 9/11, financial crisis: the aviation industry has had to cope with a number of setbacks over the past decades and yet has returned to the growth path each time. Despite the unprecedented dimensions this will once again be the case after Corona. Therefore, aircraft funds remain on course for the medium term. For new investors, the asset class currently offers even rare opportunities to benefit exceptionally from the expected recovery in the coming years. Thanks to our excellent market access and many years of experience, we can take full advantage of such opportunities for our investors.
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.
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 300 aircraft and engines. The current managed portfolio comprises 56 aircraft with an investment volume of about US$1.8 billion (as of 31 December 2020), 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
In 2020 KGAL was once again awarded the coveted award by SCOPE for its outstanding performance as "Best Asset Manager" in the "Transportation" (Aviation) category.
Invest sensibly in the aviation sector.
KGAL whitepaper "Ticket to the future"
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 stability via a broadly diversified and well balanced 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 is the follow-on product from the successful APF1. The fund diversifies across different aircraft models and international airlines, and therefore enables both type-related and geographical spread across several lessees.