KKR Enters Commercial Aviation Lending Market with Launch of AV AirFinance Platform

The investment giant KKR has unveiled a strategic entry into the aviation financing sector through the establishment of AV AirFinance Limited, a dedicated commercial aircraft loan servicer. The move reflects KKR’s broader diversification into asset-based financing and signals confidence in the long-term recovery trajectory of global commercial aviation.

Building a $800 Million Foundation

The initiative is anchored by a substantial portfolio acquisition, with KKR and AV AirFinance purchasing approximately $800 million in aviation loans from CIT Group. This portfolio comprises over 50 individual loans supporting roughly 60 commercial aircraft and features mid-single digit yields with an average remaining term of approximately four years. The strategic acquisition provides immediate scale and establishes the platform with seasoned assets as it enters the competitive aviation lending space.

Leadership and Expertise

At the helm is Siggi Kristinsson, Chief Executive Officer, whose background includes co-founding Volito Aviation Services AB, where he spearheaded debt origination and advisory services for Goldman Sachs and other major financial institutions. Kristinsson leads a specialized team of aircraft financing experts with collective experience exceeding $25 billion across multiple aviation market cycles, bringing institutional depth to the venture.

The team’s composition underscores its credibility. Ryan Jasinski transitioned from CIT as part of the portfolio transfer and continues managing origination activities across the Americas. Per Waldelof, formerly leading PK AirFinance, contributes advisory expertise on loan origination and operational strategy.

Comprehensive Market Coverage

AV AirFinance is designed to serve a diverse client ecosystem including airlines, cargo operators, aircraft lessors, manufacturers, and investment funds. The platform supports transactions across the complete aircraft ownership lifecycle—from pre-delivery positions and acquisitions through leasing arrangements, conversions, and teardown scenarios. By combining KKR’s financial backing with industry-specific origination capabilities, AV AirFinance can structure longer-term, flexible, and competitively priced solutions for both single aircraft transactions and large portfolio deals.

Strategic Market Positioning

According to Dan Pietrzak, Partner and Co-head of Private Credit at KKR, “AV AirFinance represents an attractive expansion into directly originated commercial aircraft loans, offering downside-protected returns for our long-term capital base.” The platform taps into post-pandemic aviation recovery dynamics, where renewed demand for commercial services creates sustainable financing demand.

Patrick Clancy, Principal at KKR, emphasized the milestone: “The dedicated aviation lending platform builds on our existing sector experience in commercial aircraft leasing and private aviation,” highlighting how this investment complements KKR’s broader aviation portfolio that includes stakes in Altitude Aviation, Altavair, KKR DVB Aviation Capital, K2 Aviation, DCAL Aviation, Wheels Up, Global Jet Capital, and JetEdge.

Market Opportunity and Long-Term Outlook

The launch reflects favorable conditions in commercial aviation financing. Kristinsson noted, “Market entry at this recovery phase positions us to capitalize on rising demand while offering tailored financing solutions that enable aviation stakeholders to execute their strategic objectives.” The combination of KKR’s institutional capital, the experienced management team’s market intelligence, and the established $800 million portfolio creates a competitive platform with capacity for significant scale.

About KKR and AV AirFinance

KKR operates as a global alternative asset manager with capabilities spanning private equity, credit, real assets, and insurance solutions. The firm manages investment funds focused on generating attractive returns through disciplined deployment of capital across portfolio companies and market opportunities.

AV AirFinance Limited operates as a secured financing specialist for the commercial aviation sector, with headquarters in Ireland and the United States. The platform leverages decades of collective expertise in aircraft loan structuring and benefits from KKR’s financial firepower and market access, positioning it as a formidable competitor in global aviation financing.