Global Jet Capital (GJC) continues to attract new investments and investors as it recently closed on its sixth asset-backed security (ABS) offering and raised about $609 million. The BJETS 2022-1 offering brought GJC’s total securitized assets to $4.4 billion and bonds to $3.6 billion.
The offering included $512.8 million Class A, $60.3 billion Class B, and $35.8 million Class C tranches of notes that involved 27 investors, including eight that were new.
“We completed yet another successful issuance despite turbulent market conditions,” said Vivek Kaushal, CEO of GJC (Booth U67). “This demonstrates the maturity of the BJETS securitization program and the strong performance of the company’s previous ABS transactions.”
Some 25 different aircraft models, mostly midsize and large-cabin business jets, were represented in the transaction.
GJC completed its sixth round a little more than seven years since the business was established in 2014. Since then, it has grown to become among the larger players in the business aircraft leasing and financing market with the backing of major investors such as Carlyle, FS/KKR Advisor, and AE Industrial Partners. Kaushal noted that the firm has originated $3 billion in transactions organically and bought the GE Aviation corporate aviation business for $2.5 billion.
“We’ve invested over $5 billion into this industry,” he said, and its reach has expanded globally. GJC recently completed its first operating lease in Vietnam, as well as closed on another in Singapore. “It’s taken years of education, but our operating lease products are taking root. It’s really getting tractions around the world,” Kaushal said.
This recognition also is gaining with the investor community. “Our investor education began well before we did our first ABS going back to 2016,” he said, “We have reliable, steady investors.”
Now with six ABS offerings, GJC has become the second-largest issuer in the market, he noted, and said the latest came at a time when the market is “extraordinarily volatile.”
Building that business in seven years comes from an organization that began with seasoned industry veterans, including the additions from GE Capital. He also credited the strategic patience its investors have had. “They have been tremendous partners to us.”
As the industry has taken off, so too has the desire in investing in it, he said, adding that GJC has received “a lot of interest from multiple capital providers.” The company’s goal has been to develop a platform that can deploy capital for multiple sources, he said. But at the same time, he stressed the existing investors are “committed to the business.”