Mercuria Investment Co., Ltd. (“MIC”), a subsidiary of Mercuria Holdings Co., Ltd. (“MHD”), and Airborne Capital Limited (an aircraft leasing and asset manager headquartered in Ireland; “ACL”) have decided to jointly establish and operate a new open-ended aircraft fund (“MACH OE”).
To date, MIC and ACL have jointly offered closed-ended aircraft funds structured with portfolios suitable for Japanese investors. MACH OE, however, will be innovatively structured as an open-ended fund, and will be the first open-ended fund of its kind by a Japan-based asset manager in the aircraft fund space (according to MHD research).
MACH OE aims to offer investors stable returns through generating cashflows by investing in popular aircraft types on lease to a selective group of high-quality airlines. Additionally, in being structured as an opened-ended fund, MACH OE will offer investors the additional flexibility of being able to choose when they enter and exit their investment
The target asset size is approximately JPY 150+ billion. The Development Bank of Japan is expected to participate in MACH OE as an anchor investor, and the fund is expected to be supported primarily by institutional investors such as financial institutions, pension funds, business corporations, and educational institutions.
With respect to this new initiative, Daiwa JPI Alternative Investments Co., Ltd. (“DKAI”), a group company of Daiwa Securities Group Inc. (“Daiwa Securities Group”), will provide support including the introduction of MACH OE to investors and the provision of operational services. In addition, in order to support the further development of MACH OE, DKAI has entered into a memorandum of understanding regarding a strategic business alliance with MIC and ACL.
Press Release (.pdf)