FTAI and One Investment Management Partner on Inaugural Strategic Capital Partnership

Rhea-AI Summary

FTAI Aviation (NASDAQ: FTAI) has announced a strategic partnership with One Investment Management (OneIM) to deploy over $4 billion into on-lease narrowbody aircraft. The initiative combines equity commitments with a previously announced $2.5 billion asset-level debt financing from ATLAS SP Partners and Deutsche Bank.

The partnership will focus on acquiring 737NG and A320ceo aircraft, maintaining FTAI's asset-light business model while becoming a leading investor in the narrowbody aircraft market. All engines owned by the partnership will be maintained exclusively through FTAI's Maintenance, Repair and Exchange (MRE) business via engine and module exchanges.

Positive

• Strategic partnership secures $4 billion in total capital deployment capacity
• Maintains asset-light balance sheet while expanding market presence
• Secured $2.5 billion in debt financing from major financial institutions
• Exclusive engine maintenance arrangement ensures steady MRE business revenue

Negative

• None.

Insights

Aviation Finance Expert

This strategic partnership with OneIM represents a significant scaling opportunity for FTAI with relatively low balance sheet impact. The $4 billion deployment target into narrowbody aircraft (737NG/A320ceo) effectively gives FTAI controlled access to a much larger engine pool while maintaining its asset-light business model.

The structure brilliantly solves a common industry challenge: how to grow market share without taking on excessive capital intensity. By securing $2.5 billion in asset-level debt financing from ATLAS SP and Deutsche Bank, combined with equity commitments, FTAI gains the advantages of scale without proportionate balance sheet growth.

The exclusive engine maintenance arrangement is particularly valuable. Each aircraft acquisition essentially becomes a guaranteed customer for FTAI's MRE business, creating a captive market for engine and module exchanges. This closed-loop system generates recurring revenue streams beyond the initial investment returns.

For FTAI shareholders, this partnership delivers multiple benefits: 1) Accelerated market penetration in the largest commercial aviation segment; 2) Enhanced MRE throughput and operating leverage; 3) Capital efficiency through the partnership structure; and 4) Predictable maintenance revenue from the captured engine pool. The transaction design demonstrates management's financial creativity in solving the growth-versus-capital-intensity dilemma that often constrains aviation services businesses.

Commercial Aviation Strategist

FTAI's partnership with OneIM represents a clever strategic solution to a fundamental challenge in aviation asset management. By focusing on previous-generation narrowbodies (737NG/A320ceo), the company targets aircraft at the sweet spot of maintenance economics - mature enough to require regular engine servicing but young enough to maintain operational relevance.

This model creates a powerful competitive advantage through vertical integration. While traditional lessors simply collect lease payments, FTAI establishes multiple revenue touchpoints throughout each aircraft's lifecycle. Every time an engine needs service (which occurs with increasing frequency as aircraft age), value flows to FTAI's MRE operations.

The $4 billion capital commitment significantly expands FTAI's addressable market. The narrowbody segment comprises approximately 70% of the global commercial aircraft fleet, providing substantial runway for further scaling of this model. Competitors like AerCap and Air Lease lack FTAI's specialized engine maintenance capabilities, creating a meaningful differentiation.

This innovative approach reflects aviation's evolution toward more integrated business models. By controlling both the assets and their maintenance infrastructure, FTAI creates economic alignment that traditional fragmented models lack. The participation of sophisticated investors like OneIM validates this approach and suggests potential for additional capital partnerships that could further accelerate growth without diluting existing shareholders or stressing the balance sheet.

Partnership Expects to Deploy More than $4 Billion into On-Lease Narrowbody Aircraft

NEW YORK, March 25, 2025 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI) (“FTAI” or the “Company”) today announced it has partnered with One Investment Management (“OneIM”) on its inaugural vehicle of FTAI’s Strategic Capital Initiative and expects to scale its acquisition of on-lease narrowbody aircraft over the coming quarters. The acquisitions are being funded through a combination of equity commitments and the previously announced commitment to provide $2.5 billion of asset-level debt financing from ATLAS SP Partners (“ATLAS SP”), the structured products business majority owned by Apollo funds, and Deutsche Bank AG, New York Branch.

The first vehicle under the initiative expects to deploy more than $4 billion of total capital into on-lease 737NG and A320ceo aircraft, allowing FTAI to maintain an asset-light business model while the partnership focuses on being a leading, scaled investor in the largest segment of the narrowbody aircraft market. The engines owned by the partnership will be powered exclusively via engine and module exchanges with FTAI’s Maintenance, Repair and Exchange (“MRE”) business.

Joseph P. Adams, CEO and Chairman of FTAI, commented, “We welcome OneIM as our strategic capital partner. We believe the partnership will allow us to remain focused on an asset-light balance sheet while also capitalizing on the synergies of a large portfolio of on-lease narrowbody aircraft and our proprietary engine maintenance capabilities. We believe the Strategic Capital Initiative will allow us to further expand our customer reach, drive innovation and deliver an enhanced engine maintenance solution to the global aviation ecosystem while creating value for our shareholders.”

Rajeev Misra, CEO and Co-Founder of OneIM, noted, “We are excited to partner with FTAI and see tremendous opportunities in the narrowbody aircraft leasing sector. This innovative and bespoke collaboration integrates FTAI’s best-in-class maintenance capabilities and aircraft acquisition capabilities which creates a differentiated competitive advantage for our partnership. As an early supporter of the FTAI team, we have full confidence in their ability to scale, drive market share growth and set new benchmarks for how engines are acquired and maintained worldwide.”

Advisors
In connection with FTAI’s Strategic Capital Initiative, Kirkland & Ellis LLP, McGuireWoods LLP and Gibson, Dunn & Crutcher LLP are serving as legal counsel and Lincoln International LLC is serving as financial advisor. Milbank LLP is serving as counsel to OneIM.

ABOUT FTAI AVIATION

FTAI owns and maintains commercial jet engines with a focus on CFM56 and V2500 engines. FTAI’s propriety portfolio of products, including the Module Factory and a joint venture to manufacture engine PMA, enables it to provide cost savings and flexibility to our airline, lessor, and maintenance, repair, and operations customer base. Additionally, FTAI owns and leases jet aircraft which often facilitates the acquisition of engines at attractive prices. FTAI invests in aviation assets and aerospace products that generate strong and stable cash flows with the potential for earnings growth and asset appreciation.

ABOUT ONEIM

OneIM is a global alternative investment manager that invests across the capital structure, in a range of asset classes, industries and geographies. The firm applies a flexible investment approach and focuses on creating long-term value working with exceptional partners and management teams. OneIM is sector agnostic and focuses on situations where it can leverage its cross-asset class expertise and capital base to achieve differentiated risk-adjusted returns. The firm was founded in 2022 and currently manages approximately $7 billion in assets. The team operates from offices in Abu Dhabi, London, Tokyo and New York.

FORWARD-LOOKING STATEMENTS

This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to, expectations to scale acquisition of on-lease narrowbody aircraft over the coming quarters, whether the SCI will be able to close on such committed financing, the SCI’s ability to deploy $4.0+ billion of total capital into on-lease 737NG and A320ceo aircraft. Forward-looking statements are not statements of historical fact but instead are based on the Company’s present beliefs and assumptions and on information currently available to the Company. You can identify these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “target,” “projects,” “contemplates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this communication are based upon the Company’s historical performance and on its current plans, estimates and expectations in light of information currently available to the Company. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to the Company’s operations, financial results, financial condition, business, prospects, growth strategy and liquidity. Accordingly, there are or will be important factors that could cause the Company’s actual results to differ materially from those indicated in these statements, including, but not limited to, the risk factors set forth in Item 1A. “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, as updated by annual, quarterly and other reports the Company files with the Securities and Exchange Commission.

Contacts

Investors
Alan Andreini
Investor Relations
FTAI Aviation Ltd.
(646) 734-9414
aandreini@ftaiaviation.com

Media
Tim Lynch / Aaron Palash / Kelly Sullivan
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449

FAQ

How much capital will FTAI and OneIM deploy in their strategic partnership?

The partnership expects to deploy more than $4 billion of total capital into on-lease 737NG and A320ceo aircraft.

What type of aircraft will FTAI's Strategic Capital Initiative focus on?

The initiative will focus on acquiring on-lease 737NG and A320ceo narrowbody aircraft.

How will FTAI maintain the engines in the partnership fleet?

All engines will be maintained exclusively through FTAI's Maintenance, Repair and Exchange (MRE) business via engine and module exchanges.

What is the debt financing arrangement for FTAI's aircraft acquisition program?

The program includes $2.5 billion in asset-level debt financing from ATLAS SP Partners and Deutsche Bank AG, New York Branch.