Asset backed financing

Approach to investment : Investment based on reliable assets and strong engineering capability to create value while mitigating risk

  • In its approach to asset backed finance, Armat Group focuses on business areas where it is highly knowledgeable. Armat Group uses its team’s experience and its network to identify strong and liquid assets offering resilience to market conditions over project duration.
  • A good example of this approach is aircraft financing. Armat Group’s team members have in-depth knowledge of all industry players in this field: aircraft manufacturers, suppliers and airlines and freight companies worldwide. As such, Armat Group is aware of the strong market opportunities as they occur and can structure financing for trustworthy airlines and aircraft types that we know will retain value and liquidity in the long-term and provide investors with strong and stable returns.
  • This same approach applies to real estate lending where Armat Group has a strong understanding of the market drivers and the industry players, extensive knowledge of the real estate sector and can find ways to de-risk projects for investors. This is combined with a strong sourcing through an extensive network developed over the years, flexibility to offer a panel of different investment structures and a reliable and efficient investment process constitute an innovative and entrepreneurial approach.
  • Armat Group is also involved in other type of assets such as Infrastructure, energy, mining, agro-business

Positioning : Armat Group targets

  • Armat Group focuses on projects where traditional financing by banks and financial institutions is becoming scarce, often due to recent reorientation of financing activities to restructure the bank’s balance sheets and to better comply with new banking industry regulations.
  • Economic agents have to consider new financing sources, whether it be specialized funds, family offices or retail finance. Armat Group acts as a solution architect to source meaningful projects making economic sense in actual market conditions, using solid business and market assumptions to confirm the value and liquidity of underlying assets. Armat Group then finds the best financing solutions available while ensuring ways to critically de-risk projects.
  • Targeted projects typically show an IRR in the 8% to 15% range with high cash yield returns (typically in the 5% to 7% range) and highlyconservative risk profiles.

Type of investments

Armat Group focuses on the following types of asset backed finance projects:

  • aircraft financing for prime airlines and prime aircraft
  • providing tailor made financing loan, weather bridge loans refinancing loans, or opportunistic investment target development loans (under improved conditions and higher returns on key real estate markets such as London and other world-class business hubs)
  • infrastructure financing in industries such as energy, mining, agro-business

Armat Group has the ability to find co-investors or syndicate with its network of investment partners when projects require high levels of funding or specific expertise

Geographic priorities:

  • Europe
  • Asia
  • Middle East
  • Selectively in other parts of the world (U.S., Latin America)

Project focus:

  • Aircraft financing
  • Real estate financing
  • Infrastructure financing