KGAL was awarded the 2017 Global Transport Finance Award and the Scope Alternative Investment Award for 2018 in the transportation category.
Explaining their decision, the GTF jury emphasised the success of both KGAL institutional funds in the area of traffic and transport, KGAL Aviation Portfolio Fund 1 (APF 1) and KGAL Aviation Portfolio Fund 3 (APF 3).
Due to high demand, APF 1 has been completely placed, ahead of schedule
The placement period for the APF 1 fund ended early, in September 2016. At this time, the fund had reached its maximum equity capital of €400 million, with 12 institutional investors. By the end of 2017, the investment vehicle had bought 22 aircraft with an investment volume of more than €750 million – around 95% of the available capital. This puts the fund in the target corridor of return targets at 6.5% per annum.
Current APF 3 successor fund already has over €100 million in commitments
With these equity commitments, the first two aircraft purchases were completed and currently two additional transactions are being prepared. The fund is targeting an equity volume of €200 million, allowing it to invest up to €400 million in passenger aircraft with an external financing rate of a maximum of 50%.
Award validates investment strategy
“We are delighted with the 2017 GTF award", said Jochen Hörger, Managing Director of KGAL Investment Management GmbH & Co. KG, who is responsible for the Aviation division. The award reflects how KGAL Group is perceived within the transportation industry. Hörger continued: “We are proud that investments made through APF 3 enable us to contribute further to a modern, international transport infrastructure. The fund also offers institutional investors attractive stable cash flows.”
KGAL wins Scope Alternative Investment Award
At the end of last year, KGAL had already received the Scope Alternative Investment Award for 2018 as the best asset manager in the transportation category. The jury cited the configuration of the KGAL Group and its market position as the basis for its decision. Having been active in the aviation sector for almost 40 years, they have already successfully implemented more than 140 aircraft funds with an investment volume of over €6.7 billion. With GOAL (German Operating Aircraft Leasing), the joint venture with Lufthansa, the KGAL Group has extensive in-house technical expertise and can offer a complete range of services for lessees and investors.
Close to 40 years of expertise in aircraft investments
KGAL has been successfully structuring and financing aircraft investments since 1979, and draws on two strategic joint ventures in this sector with Deutsche Lufthansa AG (Lufthansa Leasing and GOAL). An investor survey conducted by KGAL in 2017 on the subject of aviation indicates that institutional investors’ interest in aircraft leasing business has enjoyed a sharp uplift due to the attractive risk/return ratio (https://www.kgal.de/service/downloads.html). 97% of investors surveyed consider the combination of outstanding asset knowledge and well-founded marketing expertise to be very important in the selection of an asset manager.
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