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Feature: Funds from German KG market
09 March 2010
German retail investors are still keen to finance aircraft for first tier airlines. Sophie Segal speaks to bankers and fund managers about how this product is evolving.
Read more:
German KG market
Germany
KG funds
Doric Asset Finance
Hamburger EmissionsHaus
HEH
NordLB
Only a few years ago Konmmanditgesellschaft (KG funds) were a new and innovative way to finance aircraft. Though the product had been available for other asset classes, KG fund houses were educating German retail investors about aircraft for the first time. By 2009 aircraft made up about 8% of the total KG market.
In 2008 the KG market began slowing in general, and the market continued to experience the same trend in 2009. But from August, the market started regaining momentum, with the most volume for aircraft closing in December 2009.
The market decreased from $703 million raised in 2008 to $428 million in 2009 - a fall of 39%, while the KG market on a whole was down by about 37%. Some funds closed, others were pulled from the market because of limited investor interest.
“The market was perceived to be quite dead," says Mark Lapidus,...
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