Estonian aftermarket provider Magnetic MRO has launched an ambitious leasing joint venture (JV) which is targeting a $500 million asset portfolio in five years’ time.
The JV, signed with U.S. financial company Crestline Investments, will operate as Magnetic Leasing and will focus on long and short-term aviation asset management and leasing for mid-life aircraft, engines and landing gear sets.
To date, Tallinn-headquartered Magnetic Leasing has Airbus A320, Boeing 737NG and Boeing 737 classic aircraft in its portfolio, along with CFM56 narrowbody engines, V2500-A5 models and RB211-535 engine types. In addition, it also owns A320 and 737 landing gear systems available on lease to operators.
In the near-term, the company expects to have an asset portfolio worth around $100 million under its management by the end of this year. By 2025, it expects this to rise to $500 million, when it anticipates having at least 30 narrowbody aircraft and 20 engines on its books.
Alex Vella, chief operations officer at Magnetic Leasing, says the company’s desire to further diversify its business, which in the past few years has seen it add a raft of new capabilities, drove its decision to form the JV with Crestline Investments, a company based out of Fort Worth, Texas.
According to Crestline Investments’ website, it acts as an institutional alternative investment management firm specializing in “credit and opportunistic investments,” including financing and restructuring solutions for mature private equity funds.
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