LCI has launched a pioneering joint venture (JV) with an undisclosed US Public Pension (UPP) and plans to build an aviation and helicopter portfolio valued in excess of US$300 million.
The JV is the world’s first direct-to-pension fund investment partnership in the rotary market. Its inaugural transaction is the acquisition of a portfolio of seven modern helicopters, manufactured by Airbus, Leonardo, and Sikorsky, valued at over $70 million. The aircraft will predominantly operate in utility roles in Europe, the Americas and Africa. The UPP and LCI are co-investors in the vehicle, with LCI also acting as manager.
The UPP manages over US$10 billion of funds, and the new partnership with LCI will connect operators and end-users with the expertise, resources and capital of both organisations.
Jaspal Jandu, CEO of LCI, said of the JV: “We are delighted to be forging this new partnership. Real assets, including helicopters, have long been recognised as a valuable and stable investment class, and investing requires specialised knowledge and extensive resources. This new JV will accelerate our strategy of bringing innovative financial solutions to our customers by providing them with access to alternative, unlevered and patient capital.”
The UPP’s Chief Investment Officer said: “We are thrilled to announce this pioneering partnership with LCI. Real assets offer tremendous potential in today’s environment, and through our combined expertise, we aim to create a new investment model that will deliver robust returns and diversification benefits to our long-standing members. Having confidence in the experience, track record and capabilities of LCI, we look forward to the long-term partnership.”
