FTAI Aviation Completes Fundraising for its Inaugural Strategic Capital Vehicle Hitting its Upsized Hard Cap of $2.0 Billion of Equity Commitments

Rhea-AI Summary

FTAI Aviation (NASDAQ: FTAI) completed fundraising for its inaugural Strategic Capital Initiative vehicle, reaching an upsized hard cap of $2.0 billion of equity commitments (previous target $1.5 billion) on Oct 27, 2025.

The vehicle will deploy over $6 billion of purchasing power including debt financing to acquire on-lease mid-life 737NG and A320ceo aircraft. To date FTAI SCI I has invested $1.4 billion to acquire 101 aircraft and holds an additional $2.1 billion of aircraft under contract, totaling 190 aircraft closed or under LOI, with full deployment expected by end-H1 2026.

Positive

• $2.0B equity commitments reached (upsized from $1.5B)
• Purchasing power > $6B including debt financing
• Invested $1.4B to acquire 101 aircraft
• 190 aircraft closed or under LOI (incl. $2.1B under contract)
• Full deployment expected by end H1 2026

Negative

• Approximately $600M of equity commitments remain uninvested as of Oct 27, 2025
• Vehicle requires significant debt financing to reach > $6B purchasing power

Insights

Capital Markets Strategist

FTAI closed a $2.0 billion equity fund, enabling >$6 billion purchase power for mid‑life 737NG/A320ceo aircraft.

FTAI reached an upsized hard cap of $2.0 billion in equity commitments and plans to deploy over $6 billion including debt to buy on‑lease 737NG and A320ceo aircraft. The vehicle already invested $1.4 billion in 101 aircraft and holds an additional $2.1 billion of aircraft under contract, totaling 190 aircraft closed or under LOI.

Key dependencies include execution of remaining purchases and debt financing availability to reach full deployment by end of H1 2026. Concentration in mid‑life CFM56 and V2500 aircraft links returns to residual values and aftermarket engine demand. Watch the pace of contract closings, leveraged financing terms, and the asset mix as the vehicle moves from commitments to deployed capital within the next two quarters.

Aviation Asset Manager

Well‑capitalized aircraft leasing vehicle targets scale in a <$300 billion mid‑life market using operational engine capability.

The strategy pairs scale in aircraft ownership with in‑house aftermarket engine maintenance for CFM56 and V2500 engines. Owning maintenance capability can lower operating cost and support remarketing of mid‑life aircraft, which aligns with the vehicle’s focus on on‑lease, current‑generation jets.

Risks include concentration in a specific age cohort and two engine types, plus reliance on sustained airline demand for extended fleet life. Monitor the conversion rate from LOIs to closed purchases, the composition by type and vintage, and any disclosure of leverage and covenant terms through H1 2026.

Including Debt Financing the Vehicle will Deploy Over $6 Billion of Capital Acquiring On-Lease 737NG and A320ceo Aircraft

NEW YORK, Oct. 27, 2025 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI; the “Company”) today announced the completion of fundraising for its inaugural Strategic Capital Initiative vehicle (“FTAI SCI I”) hitting its upsized hard cap of $2.0 billion of equity commitments up from the original target of $1.5 billion. FTAI SCI I will be the largest aircraft leasing vehicle dedicated to acquiring mid-life, current generation aircraft with purchasing power of over $6 billion including current and future debt financing.

"We made the strategic decision less than one year ago to launch an asset management business with the initial strategy focused on acquiring on-lease, mid-life aircraft and we are thrilled with the group of institutional investors that have supported us in the inaugural vehicle,” said Joe Adams, Chief Executive Officer of FTAI Aviation. “At FTAI, we are a leader in aftermarket engine maintenance for the CFM56 and V2500 engines and look forward to also being one of the largest lessors in the world of these aircraft.”

“We believe the $300 billion dollar mid-life, current generation aircraft market is in need of a well-capitalized buyer that can also support the engine requirements of airlines globally as fleets continue to extend their operating life,” said Kallie Steffes, Head of Strategic Capital of FTAI Aviation. “Our global engine maintenance footprint will enable us to combine our aircraft investing acumen and differentiated operational capability to deliver compelling risk-adjusted returns for our investors.”

FTAI SCI I has invested $1.4 billion thus far acquiring 101 aircraft and has an additional $2.1 billion of aircraft under contract, bringing the vehicle to 190 aircraft closed or under LOI, with full deployment expected by the end of the first half of 2026. The vehicle has received widespread support across a diverse group of equity investors globally, including asset managers, insurance companies, public pensions, foundations, endowments and family offices. 

In connection with the formation of FTAI’s Strategic Capital Initiative, Kirkland & Ellis LLP is serving as legal counsel and Lincoln International LLC is serving as financial advisor.

About FTAI Aviation Ltd.

FTAI is a leading provider of aftermarket power for the CFM56 and V2500 engines which power the world’s most widely used commercial aircraft. FTAI’s differentiated Maintenance, Repair and Exchange product offers cost savings and flexibility to airlines and asset owners through the lease, sale and exchange of refurbished serviceable engines and modules. In addition, FTAI manages and co-invests in on-lease narrowbody aircraft in partnership with institutional investors through its Strategic Capital Initiative.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to FTAI SCI I’s future debt financing, ability to close on aircraft under contract or letters of intent timely or at all, and the ability to achieve full deployment of over $6 billion of capital by the end of the first half of 2026. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond the Company’s control. The Company can give no assurance that its expectations will be attained and such differences may be material. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available on the Company’s website (www.ftaiaviation.com). In addition, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or change in events, conditions or circumstances on which any statement is based. This release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.

For further information, please contact:

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

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

FAQ

What did FTAI (FTAI) announce on Oct 27, 2025 about its Strategic Capital Initiative?

FTAI announced its inaugural vehicle hit an upsized hard cap of $2.0 billion in equity commitments and will deploy over $6 billion including debt to buy mid-life 737NG and A320ceo aircraft.

How many aircraft has FTAI SCI I acquired or committed to as of Oct 27, 2025?

FTAI SCI I has invested in 101 aircraft and has an additional $2.1 billion of aircraft under contract, totaling 190 aircraft closed or under LOI.

How much capital has FTAI SCI I deployed so far and when is full deployment expected?

The vehicle has invested $1.4 billion so far, with full deployment expected by end of H1 2026.

What type of aircraft will FTAI SCI I focus on and why does FTAI highlight engine maintenance capability?

The vehicle targets on-lease mid-life, current generation 737NG and A320ceo aircraft and emphasizes FTAI's engine maintenance footprint for CFM56 and V2500 to support airline operators.

Who are typical investors in FTAI SCI I and which advisors worked on the transaction?

Investors include asset managers, insurance companies, public pensions, foundations, endowments and family offices; Kirkland & Ellis served as legal counsel and Lincoln International as financial advisor.