Apollo Global Management and Athene Holding acquired an aircraft lending business from GE Capital.
In a joint statement, the companies said that Apollo will buy the aircraft lending platform from PK AirFinance and that Athene will acquire the existing loan portfolio of PK AirFinance from the Aviation Services (GECAS) unit of GE Capital for an undisclosed amount.
PK AirFinance is a provider and arranger of loans secured by commercial aircraft, aircraft engines and helicopters. The company serves airlines, aircraft traders, lessors, investors, financial institutions and manufacturers around the world.
Alec Burger, CEO of GE Capital, said, âThis sale is aligned with GE Capital’s overall strategy of becoming smaller and simpler, and our commitment to reduce our assets by $ 10 billion ($ 9 billion). ‘euros) in 2019 is now more than halfway.
âWe continue to focus on reducing GE Capital’s balance sheet, achieving a debt ratio of less than 4x by 2020 and supporting the growth of GE Industrial through our remaining activities of GECAS, Energy. Financial Services and Industrial Finance. “
Jim Belardi, CEO of Athene, said: âThis transaction offers us a unique opportunity to acquire a large, diversified portfolio of high quality loans with attractive risk-adjusted returns.
âIn addition, this agreement is another great example of the unique advantages of our strategic relationship with Apollo and its commitment to create direct origination platforms to support the continued growth of our business. “
James Zelter, co-chairman of Apollo, said: âThis transaction also demonstrates our continued commitment to meet the investment needs of Athene and our clients, and is in line with our goal of continuing to expand the capabilities of Apollo to directly create high quality assets. “