WNG Capital, a lessor focused on investing in used Airbus and Boeing commercial aircraft has announced the closing of WNG Aircraft Opportunities Fund II which will primarily invest in mid-life to older narrow body aircraft.
The company targeted a US$300 million fund raise and is oversubscribed with US$345 million committed to-date. A final closing for two additional investors is expected in February 2019.
Fund II is expected to acquire approximately 40 to 60 Boeing and Airbus narrow body aircraft ranging in age from 15 to 20+ years and remaining lease terms of 12 to 48 months. The company said the fund is closing its first investment and has proposals outstanding for a number of suitable aircraft.
Michael Gangemi, managing member at WNG Capital said the company is “very satisfied” with the size of Fund II and the timing of its closing, he commented: “Many lessors are focused on acquiring younger and mid-life aircraft, but WNG sees continued opportunities to invest in older aircraft on shorter leases. We expect Fund II’s capital will be complementary to other sources that airlines and lessors may have.”
“This is a narrow asset class. Older aircraft on short leases require deep technical knowledge, detailed contracts experience and risk management skills,” commented managing member Al Nigro, “The team at WNG Capital has managed older aircraft through multiple market cycles.”
Since its founding in 2009, the company has built a portfolio of 59 mid-to-end of life aircraft valued in excess of US$850 million. The company says it has a network of industry contacts and potential lessees with whom it plans to partner as it deploys Fund II capital.