LONDON, MONTRÉAL, and NEW YORK, June 21, 2018
The Public Sector Pension Investment Board (PSP Investments) and ATL Partners (ATL) announced today that their jointly owned portfolio company, Sky Aviation Leasing International L.P. (SKY Leasing), has entered into a definitive agreement to sell Sky Aviation Leasing International Limited (SALI), an Irish subsidiary of SKY Leasing, to Goshawk Aviation Limited (Goshawk), an aircraft leasing company owned by Chow Tai Fook Enterprises Limited and NWS Holdings Limited (HKG:659).
Following the completion of this transaction, PSP Investments and ATL will continue to own SKY Leasing, which, through its entities based in the United States, will continue to act as servicer to aircraft owned by various securitization vehicles.
In October 2015, PSP Investments and ATL, in partnership with the management team led by industry veteran Richard Wiley, formed SKY Leasing as a new aircraft leasing platform. The investment was underpinned by the accelerating need for fleet planning in the context of strong growth in the global commercial aircraft fleet and movement to next-generation aircraft. In less than three years since its formation, SALI has acquired or committed to acquire 51 commercial aircraft, building a high-growth, established, and globally active commercial aircraft leasing platform focused on new and young mid-life aircraft.
“We are delighted to have contributed to SALI’s growth story, from a start-up into a world-class leasing platform,” said Przemek Obloj, Managing Director, Private Equity at PSP Investments. “PSP Investments partners with entrepreneurs, management teams, and other investors to grow and improve businesses. This journey, taking SALI from an idea to a $3 billion business alongside Richard Wiley, Austin Wiley, Steve Patch, the rest of the management team and ATL Partners, is a great illustration of a successful partnership, fueled by the financial backing of PSP Investments.”
Frank Nash, Chief Executive Officer of ATL and chairman of the board of SKY Leasing, said, “ATL invests in the aerospace, transportation and logistics sectors. SALI was a perfect expression of our focus on these sectors, as its activities involve all three. It also provided an opportunity to deploy significant amounts of capital globally on behalf of the fund directly and through co-investment by its limited partners. We are very pleased to have helped guide the company through its tremendous expansion.”
“I want to thank the team at SALI for having done an outstanding job in building SKY Leasing as a leading full-service aircraft lessor,” said Richard Wiley, CEO of SKY Leasing. “The key to our aircraft fleet growth has been the important airline relationships in combination with the long-term support of leading financial institutions. I have also enjoyed working with our shareholders, ATL and PSP, who have helped us build this business together.”
The transaction is subject to customary regulatory and closing conditions and is expected to be completed in the third quarter of 2018.
Morgan Stanley & Co. LLC acted as exclusive financial advisor and Gibson Dunn, Maples and Calder, and Vedder Price acted as legal advisors to SKY Leasing. Weil, Gotshal & Manges acted as legal advisor to PSP Investments.
About PSP Investments
The Public Sector Pension Investment Board is one of Canada's largest pension investment managers with C$153 billion of net assets as of March 31, 2018. It manages a diversified global portfolio composed of investments in public financial markets, private equity, real estate, infrastructure, natural resources and private debt. Established in 1999, PSP Investments manages net contributions to the pension funds of the federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York and London. For more information about PSP Investments, visit www.investpsp.com.
About ATL Partners
Founded in 2014, ATL Partners makes private equity and certain preferred securities or debt investments in the aerospace, transportation and logistics sectors principally in North America. ATL is led by investment professionals who have been investing in ATL’s focus sectors for decades. For more information about ATL Partners, visit www.atlpartners.com.
About SKY Leasing
SKY Leasing is a premier aircraft leasing company headquartered in San Francisco. Its subsidiary, SALI, is headquartered in Dublin, Ireland with a regional office in Hong Kong. As a full-service leasing platform, SKY Leasing leverages its experience, global networks, industry insights and managerial talent to acquire and lease new and young mid-life aircraft. The company’s team of industry professionals, led by CEO Rich Wiley, has developed extensive relationships in the international airline community by leasing aircraft to over 200 airline customers globally and executing more than 600 aircraft transactions valued at over $20 billion. Rich and his previous management teams co-founded industry leading aircraft lessors including Pegasus Aviation Finance Company, which was established in 2004 and sold to AWAS in 2006, and Jackson Square Aviation, which was established in 2010 and sold to Mitsubishi UFJ Lease & Finance Company in 2012. For more information about SKY Leasing, visit www.skyleasing.com.