Why visit ACE ’25?
New analysis of the Bombardier Business Aircraft Market Forecast 2016 - 2025 and JetNet data by Shearwater Aero Capital reveals that as many as 1,071 new private jets could be delivered across Europe between now and 2025. The cost of these aircraft could be in the region of $38.5 billion. Shearwater is a global corporate aviation finance specialist that has provided asset-based loans on aircraft worth over $100 million located around the world since its launch in 2014,
The company's analysis of JetNet data reveals that the region currently has a fleet of around 2,282 business jets, of which 1,119 are classified as heavy or large. Some 294 of the jets are medium sized and 869 are classified as light; these represent some of the smallest aircraft models.
Shearwater Aero Capital managing partner Chris Miller says: “Europe is a very attractive region for business aviation finance companies like ours. It has larger, more expensive aircraft than other markets, and the market here is increasingly focusing on benefits of using financing to purchase business aircraft as opposed to just paying cash.”
Shearwater Aero Capital provides asset-based financing options to help clients purchase new or pre-owned business aircraft by securing the aircraft as collateral and intelligently managing the asset to preserve its value.
Furthermore, asset-based financing provides an opportunity for investors to capture high yield value in the fastest growth segments of aircraft sales; international developing markets. Last month, the company announced that it is looking to raise up to $200 million to support its growth following its strongest performance ever in 2018.
The company provides finance solutions for all types of aircraft. Family offices and private equity firms have provided the vast majority of its funding, and they have received an average return on investment (ROI) of between 13 and 15 per cent, with no losses.
Funding is relatively low risk with an average loan to value of 65 per cent. As added investment security, all financed aircraft are independently operated by third parties unrelated to the obligor, so in the event of a default Shearwater can quickly repossess and liquidate the aircraft to satisfy outstanding balances.
2018 was Shearwater's strongest yet accounting for 60 per cent of the company's business since launch. Last year, its average loan size was approximately $7 million. It has provided loans from $1.5 million to $15 million for a range of aircraft from a Hawker 400 XP to a Bombardier Global 5000 and financed clients from Asia, the Middle East, Africa and the USA.
Shearwater offers a variety of services across the private aviation industry, including asset based financing on business jet aircraft for clients across the globe and appraisal and valuation services. All of its appraisals are USPAP compliant and performed by an accredited Senior Aircraft Appraiser by the American Society of Appraisers.