The portfolio will be serviced by AV AirFinance Limited (AV AirFinance), a global commercial aviation loan servicer established by a team of experienced industry professionals together with KKR. As part of the transaction, certain members of CIT’s aviation team will also join AV AirFinance where they will focus on servicing and originating loans.
“We are pleased to have reached an agreement with a team that understands the aviation lending business and will serve customers well,” said Phil Robbins, CIT President of Asset Management and Capital Markets. “This transaction allows CIT to rebalance our portfolio mix and reinvest in core businesses.”
Dan Pietrzak, Partner and Co-head of Private Credit at KKR, commented: “The purchase of this loan portfolio from CIT will be used to seed the launch of our aviation lending business in partnership with AV AirFinance. This transaction marks an exciting new expansion of our asset-based finance strategy into directly originated and held commercial aviation loans, and we believe AV AirFinance is well positioned to become a premier lender for the global commercial aviation market.”
The majority of loans have been transferred with the remaining amount expected to be completed by the end of the second quarter of 2021. Upon its completion, CIT will have fully exited its aircraft lending business and remains committed to providing banking and advisory services as part of its core Aerospace, Defense and Government Services business.
The transaction is being funded by separate accounts managed by KKR.
CIT is a leading national bank focused on empowering businesses and personal savers with the financial agility to navigate their goals. CIT Group Inc. (NYSE: CIT) is a financial holding company with over a century of experience and operates a principal bank subsidiary, CIT Bank, N.A. (Member FDIC, Equal Housing Lender). The company’s commercial banking segment includes commercial financing, community association banking, middle market banking, equipment and vendor financing, factoring, railcar financing, treasury and payments services, and capital markets and asset management. CIT’s consumer banking segment includes a national direct bank and regional branch network. Discover more at cit.com/about.
KKR is a leading global investment firm that offers alternative asset management and capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life, and reinsurance products under the management of The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.
Cara Major or Miles Radcliffe-Trenner