The aviation financing industry has undergone a monumental shift
in the past decade. As traditional bank lenders have come under
increasing regulatory pressure, by virtue of their systemic
importance in a decade of low interest rates and a search for
yield, private capital (private equity, hedge funds, distressed
debt funds, etc.) has been attracted to the relative stability of
cash flows and value retention of aviation assets. It is no secret
that private equity and other alternative funds have long been
accumulating capital, waiting for the opportune moment.
The COVID-19 Pandemic (the
"Pandemic") has wreaked havoc on the
aviation and travel sectors. As difficult as this has been to be
involved in, distress is attractive to private equity. As airlines
restructure and revisit their global fleet compositions, the market
reprices distressed assets to reflect evolving operating
conditions. In this relatively illiquid market, therefore, there
are unprecedented
