AIP Capital and Monroe Capital Announce Closing of Inaugural $643 Million Aircraft Asset-Backed Securitization

DUBLIN and STAMFORD, Conn. and NEW YORK, July 17, 2026 /PRNewswire/ -- AIP Capital ("AIP"), an alternative investment manager focused on opportunities in asset-based finance and Monroe Capital LLC ("Monroe"), a premier asset management firm specializing in private credit markets and asset-based finance, recently closed an inaugural aircraft asset-backed securitization (ABS) financing, MC Aviation 2026-1 (MCAV 2026-1) as part of AIP and Monroe's aircraft leasing joint venture.

"We are pleased by the strong investor interest in this transaction, which we believe speaks to confidence in AIP's expertise and capabilities in the aircraft leasing sector and our strategic partnership with Monroe Capital," said Jared Ailstock, Managing Partner of AIP. "The transaction is foundational to the investment program we've developed with Monroe and look forward to becoming a long-term programmatic issuer in the aircraft ABS market."

"The successful closing of MCAV 2026-1 marks an important milestone for Monroe's Alternative Credit Solutions platform and reflects the strength of our asset-backed finance capabilities. We are grateful for the support of our investors and financing partners and look forward to continuing to build upon the foundation established through this transaction," said Aaron Peck, Managing Director & Co-Head of Alternative Credit Solutions at Monroe.

"This transaction reflects the quality of the portfolio assembled through our partnership with AIP and our disciplined approach to aviation investing," said Aaron Levy, Managing Director, Alternative Credit Solutions at Monroe. "We believe commercial aviation continues to offer compelling investment opportunities supported by strong asset fundamentals, favorable supply-demand dynamics, and the continued growth of global air travel. The successful execution of this inaugural securitization highlights the strength of the platform."

MCAV 2026-1 totals $643 million of asset-backed debt and will be used to finance a diversified portfolio of 18 commercial passenger aircraft on operating leases with 12 different lessees across 10 different jurisdictions. The aircraft in the portfolio have a weighted average age of 5.6 years and a remaining lease term of approximately 6.9 years. 71% of the portfolio is comprised of next-generation aircraft and 81% narrowbody aircraft, with only one widebody aircraft in the portfolio which is next-generation aircraft under one year old.

MCAV 2026-1 comprises three tranches: $547.0 million of Class A notes with a fixed coupon of 5.82% yielding 5.896%, $66.5 million of Class B notes with a fixed coupon of 6.60% yielding 6.696% and $29.6 million Class C notes which were retained by the issuer. The Class A notes to be issued have an initial loan-to-maintenance adjusted base value (LTV) of 74%, the Class B notes to be issued have an initial LTV of 83%, and the Class C notes to be issued have an initial LTV of 87%.

The Class A notes will be rated A, the Class B notes will be rated BBB and the Class C notes will be rated BB by DBRS Morningstar and Kroll Bond Rating Agency. Additionally, the Class A notes will be rated A2 by Moody's Investors Service.

AIP Capital will act as servicer for the transaction. Deutsche Bank Securities, BNP Paribas and Fifth Third Securities will act as Co-Structuring Agents and Joint Lead Bookrunners, Citigroup as Joint Lead Bookrunner, Natixis and BMO Capital markets as bookrunners and KeyBanc Capital Markets as Co-Manager. Natixis acted as liquidity facility provider and UMB Bank, N.A. as trustee, security trustee and operating bank. Pivotal Corporate AMS Limited is the managing agent. Milbank LLP and Walkers (Cayman) LLP and Walkers (Ireland) LLP provided legal counsel to MC Aviation. Gibson Dunn acted as counsel to the bookrunners.

The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any jurisdiction and may be offered or sold only in a transaction exempt from, or not subject to, the registration requirements of the Securities Act. The Notes were offered and sold only to qualified institutional buyers in reliance on Rule 144A under the Securities Act and outside the United States to non-U.S. persons in offshore transactions in reliance on Regulation S under the Securities Act.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there by any sale of the Notes in any state or other jurisdictions in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such state or jurisdiction.

Forward Looking Statements

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About AIP Capital
AIP Capital (AIP) is a global alternative investment manager focused on opportunities in asset-based finance including aviation and equipment finance. AIP, together with its affiliates, manages approximately $7.1 billion of assets on behalf of a diversified global investor base. The AIP team is comprised of more than 70 experienced professionals across AIP's offices in Stamford, New York City, Dublin, and Singapore.

For more information about AIP Capital or to speak with company executives, please contact [email protected].

About Monroe Capital
Monroe Capital LLC ("Monroe") is a premier asset management firm specializing in private credit markets across various strategies, including direct lending, technology finance, venture debt, alternative credit solutions, structured credit, real estate and equity. Since 2004, the firm has been successfully providing capital solutions to clients in the U.S. and Canada. Monroe prides itself on being a value-added and user-friendly partner to business owners, management, and both private equity and independent sponsors. Monroe's platform offers a wide variety of investment products for both institutional and high net worth investors with a focus on generating high quality "alpha" returns irrespective of business or economic cycles. The firm is headquartered in Chicago and has 13 locations throughout the United States, Asia, Australia, Europe, and Middle East.

Monroe has been recognized by both its peers and investors with various awards including GrowthCap Advisory's 2025 Top Private Credit Firm List; Inc.'s 2025 Founder-Friendly Investors List; DealCatalyst as the 2025 Most Innovative Private Credit CLO Manager and Boutique Private Credit CLO Manager of the Year; Private Debt Investor as the 2025 CLO Manager of the Year, Americas; Global M&A Network as the 2025 Lower Mid-Markets Lender of the Year, U.S.A; Korean Economic Daily as the 2025 Best Asset Manager of the Year, Private Debt Mid-Cap; Creditflux as the 2021 Best U.S. Direct Lending Fund; and Pension Bridge as the 2020 Private Credit Strategy of the Year. For more information and important disclaimers, please visit www.monroecap.com.

Media Contacts

AIP Capital
Geoffrey Bayers
[email protected]