Irish law firm Walkers has advised global investment firm KKR on a $1.4 billion (€1.29 billion) equity commitment to its Altitude III aircraft leasing platform, developed in partnership with commercial aviation leasing and financing company Altavair, in a transaction that underlines the continued growth of institutional investment in the commercial aircraft leasing sector.

According to Irish Legal News, the commitment builds on two existing aircraft leasing portfolios established by KKR and Altavair and will support the acquisition and leasing of commercial aircraft and engine assets to airlines and cargo operators worldwide.

Walkers advised on both Irish and Cayman Islands law in connection with the cross-border aspects of the transaction. The team was led by partner Donna Ager, supported by associate Sophia Hitchcock, both practising Irish law from Walkers' London office, alongside Cayman Islands partner Sarah Humpleby, supported by associate Alexandra Franklin.

Ager said the latest commitment marked an important milestone in the continued growth of the KKR and Altavair partnership. "KKR and Altavair have built a significant aircraft leasing platform over a number of years and this latest commitment marks an important milestone in the continued growth of that partnership. It was a pleasure to support KKR and Altavair on the initial investment and we look forward to continuing to support as assets are acquired to build out the portfolio," she said.

The transaction reflects sustained appetite among institutional investors for exposure to commercial aircraft leasing, an asset class that has attracted significant private equity and alternative capital in recent years as demand for leased aircraft continues to grow against a backdrop of constrained OEM output and rising airline fleet requirements.

Ireland plays a central role in structuring transactions of this nature, with Irish-domiciled special purpose vehicles and Irish law commonly used in aviation finance transactions due to the country's favourable legal and tax framework, deep pool of aviation finance expertise and well-established regulatory environment for aircraft asset ownership structures.

KKR is one of the world's largest alternative asset managers, with a broad portfolio spanning private equity, credit, infrastructure and real assets. The Altitude III commitment represents a further expansion of the firm's aviation leasing exposure through its partnership with Altavair, which specialises in commercial aircraft acquisition, leasing and portfolio management across a global customer base of airlines and cargo operators.