Global alternative asset manager EnTrustPermal recently announced they expanded their alternative investment capabilities by adding veteran CIT Group investor John Morabito to their dedicated aviation financing team. This increases the private debt opportunities capabilities EnTrustPermal has in vehicle financing and direct leasing in the aviation and maritime industries. Morabito joins another CIT Group veteran Svein Engh at EnTrustPermal. Engh has 30 years’ experience working in maritime financing focusing on oil and shipping services sectors where he raised and managed capital for the CIT Group.
Gregg Hymowitz chairman and CEO of EnTrustPermal said the company’s core focus has long been on providing their customers relevant and proprietary ideas that are new, attractive and offer great sources of return. He’s excited about the benefits the specialized knowledge and differentiated direct strategies Morabito and Engh provide. Morabito was CIT Group’s head of financial institutions and crucial to the bank’s commercial aircraft leasing and lending platform being successful. He and Engh held leadership positions in CIT’s Transportation Finance division.
The Blue Ocean Fund, the maritime financing vehicle EnTrustPermal launched in June 2017 was led by Svein Engh. It had about $300 million dedicated to its strategy and actively deploying capital designed to take advantage of the shipping sector’s compelling environment and financing opportunities. Since its inception the Blue Ocean Fund has consistently provided its investors with timely quarterly distributions. EnTrustPermal anticipates that in 2018 they will deploy approximately $500 million to its maritime strategy.
According to Svein Engh, the maritime sector’s large void in funding for debt capital caused by banks not being involved in such activities has now created an excellent opportunity for EnTrustPermal and their clients. The Blue Ocean Fund and other non-bank lenders can drive pricing and structuring of loans that are very appealing. John Morabito, involved in aviation financing investment for almost two decades, said he’s excited about Blue Sky’s positioning as a flexible provider of solutions within the aviation industry, as well as the pools of capital to which he has access through EnTrustPermal to offer both leasing and debt structures.
EnTrustPermal will soon launch Blue Sky, a fund like Blue Ocean that’s focused on aviation financing. A direct offering, EnTrustPermal sees both leasing and private debt opportunities as targeting a massive addressable market that offer the chance to capture unique, attractive risk-adjusted returns and benefit from the security and low volatility of real asset coverage.