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Family offices are set to pool investments to gain better exposure to private debt

by LLB Editor
25th Jul 19 11:07 am

New research from fast growing Shearwater Aero Capital, the global corporate aviation finance specialist, reveals the trend for family offices to pool their investments in order to gain greater exposure to the private debt market, and potentially better terms, is set to increase.

Two thirds (66%) of family offices and wealth managers expect this trend to increase over the next two years, with 20% anticipating no change, and just 7% expecting a decline.

A key development from this trend is that 52% of those family offices and wealth managers interviewed believe the private debt market is developing and offering a wider variety of investment opportunities for the sector.  Only 9% of those interviewed disagree with this view.

Chris Miller, Managing Partner, Shearwater Aero Capital, said: “Our research shows that 55% of family offices believe the main attraction of private debt lies in the increasing choice in the asset class, such as business aviation.”

2018 was Shearwater’s strongest yet accounting for 60% of the Company’s business since its launch in 2014.  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. Its average loan to value is 65%.

Last month, fast growing Shearwater Aero Capital announced it’s in the process of welcoming additional capital sources to diversify its investor base and keep up with demand.

Shearwater offers a variety of services across the private aviation industry. This includes:

Aircraft financing: Asset based financing on business jet aircraft for clients across the globe.

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 (ASA).

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