The Capital Quest | Dubai Aerospace Enterprise acquires aircraft leasing fund

Aircraft leasing company Dubai Aerospace Enterprise (DAE) has completed the acquisition of European aircraft lessor Sky Fund I Irish Ltd and its subsidiaries from San Francisco-based aviation investment manager Sky Leasing.

Sky Fund I owns and is committed to own 36 aircraft on lease to 14 airlines, across 11 countries. Apart from San Francisco, Sky Leasing operates out of California, Dublin and Singapore.

The company’s fund management business was founded in 2019, in partnership with M&G Investments which acquired a stake in the business and invested $300 million of equity in its 2019 vintage fund. As of June 30, 2022, Sky Leasing manages a portfolio valued in excess of $3.5 billion and has over $750 million of equity under management. About 90% of the acquired portfolio consists of new aircraft.

With this acquisition, DAE’s fleet of managed, owned, committed and mandated-to-manage planes will grow to be 500 strong. “This acquisition supports our continued growth and furthers our commitment to invest in new technology aircraft, reducing the emissions intensity of our overall fleet,” said DAE’s CEO Firoz Tarapore.

DAE’s leasing arm, DAE Capital, currently has a fleet of 475 aircraft—both Airbus ATR and Boeing—which are cumulatively worth $17 billion.

Apart from DAE Capital the other prominent arm of DAE is DAE Engineering, which provides regional maintenance, repair and overhaul (MRO) services and has customers across Europe, the Middle East, South Asia and Africa. DAE Engineering has its main facility in Amman, Jordan, where it services 17 wide and narrow body aircraft.

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