Key Takeaways
- Sector: Asset-Based Finance (ABF).
Analysis
Denver (USA), August 8, 2025 — Crestone Air Partners has teamed up with funds managed by Blue Owl Capital to launch Blue Crest Aviation Partners, a joint venture that will acquire mid-life commercial jet aircraft on lease to airlines worldwide. The aim is to build a portfolio that generates steady, income-oriented returns from aircraft in the mature phase of their lifecycle.
Crestone, a subsidiary of Air T, Inc. (NASDAQ: AIRT), will manage the venture’s assets using the group’s integrated aviation services, including maintenance, parts sales, storage, disassembly, and leasing. The JV continues a relationship that has already seen the partners deploy capital through Contrail JV II and related vehicles, with hundreds of millions invested in aviation assets since 2020.
“Blue Crest Aviation Partners represents the next step of scaling for our platform,” said Kevin Milligan, CEO of Crestone Air Partners. “We’re proud to continue building with Blue Owl’s funds and deepen our alignment through a dedicated vehicle targeting opportunities in the mid-life aviation market.”
Ivan Zinn, head of Alternative Credit at Blue Owl, said the venture builds on “years of successful partnership” and reflects confidence in the aviation sector’s current opportunities.
KPMG LLP advised on tax matters, Pillsbury Winthrop Shaw Pittman LLP handled legal counsel, and Phoenix American Financial Services will act as administrator.
Similar joint venture moves: Blue Crest is part of a broader trend of aviation-focused partnerships. In 2024, Apollo Global Management and Griffin Global Asset Management launched a $1.5 billion JV to buy and lease commercial aircraft to carriers in growth markets. That same year, Carlyle Aviation Partners teamed with a Middle Eastern sovereign wealth fund on a $600 million platform targeting mid-life narrowbodies. Earlier in 2025, Stonepeak and AerCap created a dedicated cargo aircraft leasing vehicle to capture demand in the booming e-commerce logistics sector. These ventures share a common goal: pooling capital and operational expertise to scale in specific aviation asset niches where demand visibility is high.
Market analysts say mid-life aircraft portfolios are attractive now because supply constraints on new deliveries, combined with strong passenger and cargo demand, have extended the profitable operating life of older jets. Partnerships like Blue Crest aim to capitalize on that window before fleet renewal cycles return to normal in the late 2020s.