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A new era
19 October 2008
Janet Du Chenne finds out about a changing market from some of its leading players.
Read more:
Lothar Ratei
GSI
Willis Lease Finance
Clyde & Co
Pillsbury Winthrop
Very few investors have entered the engines market in the past few years. This is mainly because there are not many specialist asset managers who understand the asset. The market is also changing: manufacturers are trying to produce new, more fuel-efficient assets, while would-be investors are having a hard time accessing capital.
Luckily there are sources of capital available. Germany, for example, has a growing number of retail investors who can provide the capital needed to invest in engines.
"To this day we have had no issues with raising equity for German closed-end funds," says Lothar Ratei, partner at GSI, a German fund company. "Investors have good visibility on the assets."
GSI set up its first engine fund for German investors about two-and-a-half years ago. The company bases the fund on a "diversified mix" of engines. "It is not like other funds with a single asset, like the A380, where...
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