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Apollo Global and Athene to acquire aviation lending business from GE Capital

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Apollo Global Management LLC, with its strategic partner Athene Holding, announced they have entered into a definitive agreement to purchase PK AirFinance, an aviation lending business, from GE Capital’s Aviation Services unit. In connection with the transaction, Apollo will acquire the PK AirFinance aircraft lending platform and Athene will acquire PK AirFinance’s existing portfolio of loans. Financial details of the transaction were not disclosed, although the $3.6 billion of PK AirFinance financing receivables that were held for sale in the second quarter of 2019 are being sold at a premium to book value in this transaction. Jim Belardi, CEO of Athene, said: “This transaction provides us with a unique opportunity to acquire a large, diversified portfolio of high-quality loans with attractive risk-adjusted returns. In addition, this deal is another great example of the unique benefits of our strategic relationship with Apollo and its commitment to building direct origination platforms in support of the continued growth of our business.” The deal is expected to close in the fourth quarter. Athene Holdings’ annuity business, Athene USA, is based in West Des Moines and employs about 1,100 people locally.