AIP Capital and Monroe Capital Close US$643 Million Aircraft ABS

AIP Capital and Monroe Capital have completed their inaugural aircraft asset-backed securitization, raising US$643 million through the MC Aviation 2026-1 (MCAV 2026-1) transaction to support their aircraft leasing joint venture.

The financing is backed by a portfolio of 18 commercial passenger aircraft leased to 12 airlines across 10 jurisdictions. The portfolio has a weighted average aircraft age of 5.6 years and an average remaining lease term of approximately 6.9 years. Next-generation aircraft account for 71% of the portfolio, while narrowbody aircraft represent 81%.

The transaction includes US$547.0 million of Class A notes, US$66.5 million of Class B notes and US$29.6 million of retained Class C notes. The Class A notes are rated A by DBRS Morningstar and Kroll Bond Rating Agency, and A2 by Moody’s Investors Service, while the Class B notes are rated BBB and the retained Class C notes are rated BB.

Jared Ailstock, Managing Partner of AIP Capital, said: “We are pleased by the strong investor interest in this transaction, which we believe speaks to confidence in AIP’s expertise and capabilities in the aircraft leasing sector and our strategic partnership with Monroe Capital. The transaction is foundational to the investment program we’ve developed with Monroe and look forward to becoming a long-term programmatic issuer in the aircraft ABS market.”

AIP Capital will serve as transaction servicer, with Deutsche Bank Securities, BNP Paribas, Fifth Third Securities and Citigroup among the lead arrangers and bookrunners.