#USA #Minneapolis #Aviation Lending #Merit AirFinance #Casletake

Castlelake Introduces Merit AirFinance

On August 12, 2025, Castlelake, L.P., a prominent player in global alternative investments, announced the inception of Merit AirFinance, a new venture dedicated to providing customized debt capital solutions specifically tailored for airlines and leasing companies. This initiative marks a significant step in Castlelake's 20-year history, allowing the firm to further sharpen its focus in the aviation lending sector.

A Strategic Move in Aviation Lending

With an impressive track record, Castlelake has deployed more than $5 billion in the aviation sector since 2020. The formation of Merit AirFinance symbolizes a strategic effort to create a dedicated subsidiary that separates its leasing and lending portfolios. This new operational entity aims to offer innovative and flexible solutions to meet the dynamic needs of airlines and leasing firms both for new and used aviation assets.

Patrick Mahoney, who has been integral to Castlelake's aviation capital markets, will lead Merit AirFinance as its President. His deep expertise, honed through years in aviation underwriting and direct lending, will play a crucial role in shaping the strategic direction of Merit. Taking over Mahoney’s previous responsibilities at Castlelake will be Jakob Gallagher, who brings 13 years of capital markets experience to the table, currently having served as Head of Capital Markets at Wings Capital Partners.

Innovative Solutions for the Aviation Market

Evan Carruthers, Castlelake's Chief Executive Officer and Chief Investment Officer, expressed his views on the new venture, emphasizing Castlelake's commitment to continual innovation within the aviation market. He stated, “The formation of Merit AirFinance exemplifies our commitment to a solutions-oriented partnership approach.” This new entity is expected to attract significant opportunities, enabling partnerships that match capital inflows with appealing and balanced risk in aviation investments.

Merit AirFinance will commence its operations backed by over $1.8 billion in committed capital through separately managed accounts. This substantial capital base will empower Merit to respond effectively and swiftly to the needs of its clients.

About Castlelake

Founded in 2005, Castlelake is recognized for its expertise in asset-based private credit. Managing around $22 billion in assets, the firm has earned respect as a strategic partner of Brookfield Asset Management, a giant in the alternative investment space with over $1 trillion in assets. Castlelake operates globally, boasting a team of more than 220 professionals, including 80 investment experts distributed across offices in North America, Europe, the Middle East, and Asia.

Merit AirFinance: A Vision for the Future

Merit AirFinance aims to revolutionize aviation finance by establishing long-lasting partnerships with its clients. By focusing on a wide array of debt options, including single-asset loans and larger facilities, Merit is set to cater to various financing needs within the industry. The team at Merit is composed of seasoned aviation finance professionals who understand the importance of a solutions-driven methodology.

In conclusion, the launch of Merit AirFinance is more than just a business expansion; it reflects Castlelake’s commitment to innovation within aviation finance, promising to introduce sophisticated solutions that will benefit airlines and leasing companies alike. As the aviation industry continues to evolve, Merit AirFinance is poised to become a key player in sustaining its growth and success.

For more information, you can visit Merit AirFinance.