GIC to acquire BBAM stake from ONEX and BBAM management

GIC, Singapore’s sovereign wealth fund, through its affiliates, has agreed to acquire a 30% interest in BBAM from BBAM’s management team and Onex.

The transaction is expected to close by September 30, 2017, subject to certain conditions and approvals. Following the transaction, all three parties will assume minority joint ownership of the company.

The investment follows a commitment by GIC earlier in 2017 to Incline Aviation, the aircraft leasing industry’s largest institutional fund, managed by BBAM.

In January 2013, Onex acquired a 50% interest in BBAM for US $165 million.

“GIC is among the industry’s most sophisticated investors and we welcome its interest in BBAM,” commented Steve Zissis, BBAM’s Founder, Chairman and Chief Executive Officer. “We’ve been deliberate in our choice of partner and are excited for this next chapter in our history.”

Arjun Khullar, Head of Integrated Strategies Group at GIC, said, “BBAM is a remarkable platform built upon a 30-year joint venture with Nomura Babcock & Brown. It has expanded through its founding and ongoing management of FLY, and Incline. As a long-term investor, we believe it is a unique opportunity to invest in the aircraft leasing sector which has strong growth potential.”

“GIC’s participation in BBAM is a strong endorsement of the asset management model that BBAM pioneered more than two decades ago and the investment returns realized on assets managed by BBAM over that period,” said Tawfiq Popatia, a Managing Director at Onex. “Leased commercial jet aircraft are widely accepted as a bona fide asset class today and much of that can be traced back to the efforts of Steve and his team.”

BBAM is the world’s largest dedicated manager of investments in leased commercial jet aircraft providing over 200 airline customers in more than 50 countries with fleet and financing solutions over the last three decades. BBAM is the only manager in the aircraft leasing industry focused exclusively on generating investment returns for third-party investors.

BBAM currently has more than 400 aircraft under management and employs over 120 professionals at its headquarters in San Francisco and in additional offices in New York, London, Tokyo, Singapore, Zurich, Dublin, and Santiago.

photo credit: BBAM

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.