IRISH FINANCIER Dómhnal Slattery is on the verge of completing a return to the global aircraft leasing business with the backing of some $500 million from Oak Hill Capital Partners, a large US private equity group.
Mr Slattery, who made his reputation in aircraft leasing and successfully running RBS Aviation Capital, has set up a company called Avolon to buy aircraft to lease to airlines.
It is understood that Oak Hill is in advanced talks with Avolon to invest up to $500 million in the business. Avolon is hoping to raise about $800 million in total.
In addition to this, investment bank UBS is believed to be working on a $690 million revolving credit facility to enable Avolon fund its first acquisitions.
Avolon will be registered in Ireland. It aims to use the money to buy 120 passenger jet aircraft including Boeing 737s and Airbus A320s, exploiting the recession to secure planes at cheaper prices.
It is understood that Mr Slattery, who is also ex-GPA, will be the chief executive of Avolon. He is believed to have recruited seven executives from RBS Aviation Capital to help run the business.
Mr Slattery left RBS Aviation Capital in 2004. He set up Claret Capital, an Irish private equity group that made many investments but has been hit by the economic downturn.
Mr Slattery is also a founder of Jetbird, an Irish executive jet airline that missed its planned launch last year due to a lack of funds.
On its website, Oak Hill says it manages more than $8 billion in private equity capital.
Denis Nayden, managing partner of Oak Hill and a former head of GE Capital, is expected to become Avolon’s chairman.
