Castlelake’s Aviation Fund Soars to Over $2B 

Castlelake L.P., a global alternative asset manager specializing in asset-based private markets, announced the final close of Castlelake Aviation V Stable Yield L.P. Together with related aviation strategy investment vehicles, accounts, and co-investments, the fund secured over $2 billion. This raise reflects a mix of new and longstanding relationships with a diverse array of global institutions, including pensions, sovereign wealth funds, and endowments. 

It’s the fifth and largest dedicated aviation fund to date for the Minneapolis-based firm. Since its founding in 2005, it has deployed over $21 billion into aviation opportunities. Castlelake’s aviation platform leverages a comprehensive set of capabilities—including in-house capital markets expertise and technical asset management—to serve as a full-spectrum partner to participants in the aviation industry. 

Among its latest moves, the firm issued its ninth aircraft asset-backed securitization. It also provided a $740 million term loan to Abra, a $400 million financing package to Virgin Atlantic Airways, and established a $1 billion term loan facility to bolster its ongoing investment in and acquisition of high-demand aviation assets. 

“In our view, the persistent and significant shortage of flexible alternative capital in the aviation sector combined with a chronic undersupply of aircraft is creating a durable opportunity set for Castlelake to deliver attractive and creative exposure to the Fund’s investors,” said Evan Carruthers, CEO and CIO of Castlelake. 

In May 2024, Castlelake sold a 51% interest in the firm’s fee-related earnings to Brookfield Asset Management for around $1.5 billion.