Malta-based aircraft management company Hyperion Aviation has launched Hyperion Aero Capital, an aircraft funding platform focused on providing financing for long term cargo leasing and leased business jets. The division combines decades of experience in aviation fleet management with financing to provide a range of currency-agnostic hybrid opportunities including debt, equity and convertible instruments for aircraft financing.

Financing for aircraft has become increasingly fragmented as traditional lenders have retreated to more vanilla sources, and yet the private aviation sector continues to grow. Post-COVID, shipping blockages and limitations on commercial aviation (fewer flights to fewer destinations) have hampered transport, logistics and business travel. Yet, both cargo and business travel are essential to keep the economy functioning and goods moving.

Managing director Eric Weisskopf says: "The lease financing market is well established for commercial aviation and represents some of the brightest minds in aviation financing who have left the banking sector over the years. The gap in financing for cargo and business jets is often unfulfilled because of the smaller number of aircraft that tend to be secondhand. That being said, insurable, secured assets with predictable depreciation and servicing costs as well as quality lessors, assessing the credit risk for these transactions (and providing cost effective financing) are achievable by establishing dedicated pools of capital. Applying a model that has worked effectively for real estate and renewable energy transactions, Hyperion will offer both investors and lessors a dedicated financing structure."

A volatile stock market, four-decade high inflation, increasing interest rates and geopolitical tensions this year have stunted the global market and contributed toward a dramatically changing role of alternative investments. Investors relying on the traditional game have experienced a serious decline in their portfolios and now have to refocus on alternatives to further diversify portfolios and protect against stubborn inflation and possible recession. Hyperion aims to attract investors refocusing on alternatives.

Founder Scott Levy says: "Investors will be able to access a secure, insurable real economy asset that will provide above market returns without the volatility associated with the current market, while lessors will find a dedicated team and a single point of contact for financing assets that mainstream banks find difficult to finance."