ADIA joins Avolon, I Squared Capital to launch $1.4 billion aircraft leasing platform. 3 Nov 2026 14:43 A. SREENIVASA REDDY (ABU DHABI) The Abu Dhabi Investment Authority (ADIA) has joined a joint venture to establish Constellation Aviation, a new aircraft leasing and infrastructure investment platform. Avolon, a leading global aviation finance company, and I Squared Capital, a global infrastructure investor, are partners in the joint venture, which will initially acquire a portfolio of aircraft from Avolon with a current market value of $1.4 billion. The initial portfolio comprises 22 modern, fuel-efficient aircraft with an average age of approximately five years, currently leased to 17 airlines across 15 countries, according to a statement issued by Avolon. The platform has ambitions to expand its aircraft portfolio to $6 billion, Reuters reported, citing a source familiar with the venture. The joint venture will bring together long-term institutional capital from ADIA and I Squared Capital with Avolon's expertise in aircraft leasing, asset management and servicing, the statement said. ADIA is participating through a wholly owned subsidiary, while Avolon will retain a minority equity interest in Constellation Aviation and serve as its exclusive aircraft manager and servicer. The platform is designed to provide airlines with access to aircraft capacity while offering investors exposure to long-term contracted cash flows generated by aircraft leasing. Khadem AlRemeithi, Executive Director of the Infrastructure Department at ADIA, said the investment reflects the long-term prospects of the aircraft leasing industry. "Aircraft leasing is a resilient and growing sector supported by strong structural demand for modern aircraft. The Constellation platform brings together two like-minded investors with one of the world's leading operators to meet that demand," AlRemeithi said. Avolon said Constellation is expected to expand over time, benefiting from continued growth in global passenger demand, constraints on aircraft manufacturing capacity and the increasing reliance of airlines on leasing to finance fleet expansion and renewal. The company said aircraft manufacturers' order books now extend a decade or more into the future, increasing the importance of leasing companies with established aircraft delivery commitments. Gautam Bhandari, Co-Founder, Managing Partner and Global Chief Investment Officer of I Squared Capital, said Avolon's substantial aircraft orders with Boeing and Airbus provided the joint venture with an important advantage. "Partnering with Avolon gives Constellation immediate access to a modern aircraft portfolio and a proven origination and servicing platform," Bhandari said. "Together with ADIA, we look forward to building Constellation into a leading aviation infrastructure leasing platform." Ross O'Connor, Chief Financial Officer of Avolon, said the joint venture would expand the company's aircraft asset management business. "The joint venture will combine long-term institutional capital with Avolon's leasing, servicing and asset management expertise," O'Connor said. "Constellation will expand our asset management business and reflects the confidence leading institutional investors place in aviation and Avolon's ability to originate, manage and service high-quality assets." Avolon is one of the world's largest aircraft leasing companies, with an owned, managed and committed fleet of 1,092 aircraft as of September 30, 2026. The company works with 138 airlines in 62 countries. According to Reuters, Avolon, a subsidiary of China's Bohai Leasing, recently placed its largest aircraft order, taking its total aircraft order book to 749, in addition to 561 aircraft it currently owns. I Squared Capital, headquartered in Miami, manages more than $60 billion in assets and has investments across transportation, logistics, energy, digital infrastructure and other infrastructure sectors. Its portfolio includes more than 100 companies operating in over 70 countries. The Constellation Aviation transaction is expected to close following the receipt of necessary regulatory approvals.

REFILE-UPDATE 1-Avolon creates new aircraft leasing platform with ADIA, I Squared Capital. Mon, 02nd Nov 2026 11:20 DUBLIN, Nov 2 (Reuters) - Global aircraft leasing giant Avolon on Monday announced a new investment platform with I Squared Capital and a subsidiary of the Abu Dhabi Investment Authority (ADIA) expected to initially comprise 22 of the lessor's aircraft valued at $1.4 billion. Dublin-based Avolon, the world's third-biggest aircraft lessor, said the new joint venture, Constellation Aviation, would provide airlines with access to fleet capacity while giving investors exposure to long-term contracted cash flows. Aircraft lessors own around half of the world's airline fleet that are in hot demand due to a backlog of plane orders. Avolon agreed its largest ever aircraft order last month, bringing its total number on order to 749, on top of 561 it currently owns. The $1.4 billion seed portfolio comprises 22 aircraft to be acquired from Avolon with an average age of around five years and leased to 17 airlines in 15 countries, Avolon said. Avolon, a subsidiary of China's Bohai Leasing Co Ltd, will retain a minority equity interest and serve as Constellation's exclusive aircraft manager and servicer as the platform scales up over time. A source familiar with the platform said its ambition was to grow the size of the portfolio to $6 billion. ADIA, one of the world's largest sovereign wealth funds, is the oldest of Abu Dhabi's three major government-controlled funds that invests on behalf of the emirate's government. Miami-headquartered infrastructure investor I Squared Capital manages over $60 billion in assets.

Abu Dhabi's Adia, Avolon and I Squared Capital to launch aviation investment platform. Constellation expected to acquire seed portfolio of aircraft with current market value of $1.4 billion. November 02, 2026 Abu Dhabi Investment Authority, the emirate's sovereign wealth fund, has teamed up with aviation finance company Avolon and infrastructure investor I Squared Capital to launch an aircraft leasing infrastructure investment platform. The new platform, Constellation Aviation, will provide airlines with access to fleet capacity and investors with exposure to long-term contracted cash flows, the companies said in a statement on Monday. Once the transaction is completed, Constellation is expected to acquire a seed portfolio of aircraft from Avolon with a current market value of $1.4 billion. The seed portfolio includes 22 aircraft with an average age of about five years, on lease to 17 airlines in 15 countries. Constellation is expected to scale over time, the companies said. "Aircraft leasing is a resilient and growing sector supported by strong structural demand for modern aircraft," said Khadem AlRemeithi, executive director of the infrastructure department at Adia. Adia, which does not disclose its assets, invests on behalf of the Abu Dhabi government and is the largest sovereign wealth fund in the Gulf, with assets touching $1.1 trillion, according to consultancy Global SWF. The authority makes direct and indirect investments in asset classes including equities, fixed income, infrastructure, private equity and property across continents. The sovereign investor said in September that it aimed to diversify its approach across sectors to manage risks. The aviation market is growing amid a continued rise in passenger demand, but airlines continue to face aircraft supply shortages and delivery delays, driving demand for leased aircraft to finance fleet renewal and expansion. In July, plane lessor Dubai Aerospace Enterprise (DAE) partnered with US-based Neuberger Specialty Finance to launch Mustang Aerospace, an aircraft leasing co-investment vehicle targeting up to $6 billion in assets over the medium term. DAE in April also agreed with Blackstone Credit & Insurance to launch a platform that will invest $1.6 billion annually to build a portfolio of commercial aircraft. "Aircraft manufacturers' order books now stretch a decade or more into the future, and airlines rely on lessors with scale and aircraft delivery slots to grow their fleets," said Gautam Bhandari, co-founder, managing partner and global chief investment officer of I Squared Capital. "Avolon has one of the largest order books with Boeing and Airbus and thus enjoys significant benefits of scale." Avolon will retain a minority equity interest in the joint venture and serve as Constellation's exclusive aircraft manager and servicer, the statement said. The transaction is expected to close subject to securing the necessary regulatory approvals. The joint venture will be supported by a syndicated debt facility provided by a group of international banks. Updated: November 02, 2026, 5:49 AM