Falko Raises $650m for Second Fund
Falko Regional Aircraft Limited (“Falko” or the “Company”), a market leading aircraft operating leasing and asset management company, announces that it has reached a final close on Falko Regional Aircraft Opportunities Fund II (“FRAOF II” or the “Fund”) with total commitments of $650 million. The Fund will make investments in regional aircraft leased globally.
Falko significantly surpassed its original target of $600 million and received commitments from a diverse group of institutional investors, including public and private pension plans, insurance companies, wealth managers, endowments, family offices, a fund of funds and a sovereign wealth fund from across North and South America, Europe, the Middle East, Asia and Africa. The hard cap for the Fund was set at $650 million.
Falko has already made its first investment from the Fund with the purchase of a portfolio of 19 current generation Embraer and Bombardier regional jet aircraft with leases attached, representing an equity investment in excess of $100 million.
Falko was formed in July 2011 when funds managed by Fortress Investment Group (“Fortress”) backed the Falko management team through the management buy-in of BAE Systems Asset Management.
Jeremy Barnes, Chief Executive Officer of Falko, said: “We are very excited to have closed our second fund, which is a landmark transaction for Falko. In particular, we are very pleased to have attracted such a high-quality cadre of LPs into the Fund with whom we look forward to developing long-term, fruitful relationships. We could not have achieved a successful fundraise without a huge team effort and the first-class support of our advisors including Evercore, Kirkland and Ellis and Carey Olsen.”
Falko intends to make equity investments in new and used regional aircraft leased globally. The Fund is a continuation of the strategy adopted by Falko’s first fund, which closed on $415 million in 2015 and is now fully invested, leveraging the experience of Falko’s senior team who have all been active in the regional aircraft space for over 20 years.
Evercore Private Funds Group acted as the exclusive global placement agent for the fundraise. Falko’s legal advisors were Kirkland & Ellis LLP (International & US) and Carey Olsen (Jersey).
Falko is an aircraft operating leasing company focused on the regional aircraft sector. It is one of the longest standing and largest managers of regional aircraft globally, having acquired 140 aircraft with a total value of $2.0 billion since its expansion into all regional aircraft types in 2013. Falko’s strategy is focused on growing its portfolio of funds and aircraft under management and the continued development of products and services in support of its aircraft lease management activity. Falko was formed in July 2011 when funds managed by Fortress Investment Group completed the purchase of BAE Systems Asset Management and its associated aircraft portfolio.