Daiwa Securities Group is buying a minority stake in Ireland‑based Airborne Capital, aiming to add aircraft‑leasing assets to its alternative‑investment suite for family offices and institutional clients. The move reflects growing demand for non‑traditional returns in Japan’s wealth‑management market and could accelerate the creation of larger aviation‑focused funds.
Business news
Tokyo – Daiwa Securities Group announced it will acquire a minority equity position in Airborne Capital, an Ireland‑based aircraft‑leasing firm that manages a portfolio of roughly 150 commercial jets valued at about $5 billion. While the exact purchase price was not disclosed, analysts estimate the stake to be worth $120‑$150 million based on recent financing rounds.
The partnership will enable Daiwa to bundle aircraft‑lease receivables into structured products for its high‑net‑worth and institutional clientele. Daiwa’s wealth‑management arm already offers private‑equity and real‑estate funds, but aircraft leasing has been largely absent from Japanese distribution channels.
Market context
Aircraft leasing has become a favored alternative‑asset class globally, delivering average net returns of 6‑8% over the past decade, outpacing traditional fixed‑income benchmarks. According to a 2025 report by the Aviation Leasing Association, the sector’s total assets under management grew from $600 billion in 2018 to $950 billion in 2024, driven by airlines’ preference for asset‑light models and the post‑pandemic rebound in passenger traffic.
In Japan, family offices and pension funds have been shifting a modest 5‑7% of their discretionary allocations toward alternatives, but regulatory constraints and a limited domestic product pipeline have kept volumes low. Daiwa’s move aligns with a broader trend among Japanese securities houses—such as Nomura and Mizuho—who are expanding cross‑border alternative‑asset capabilities to meet client demand for yield in a low‑interest‑rate environment.
What it means
Broader product suite for wealth clients – By securitising lease payments from Airborne’s fleet, Daiwa can launch fixed‑income‑style notes with quarterly coupons tied to lease cash‑flows. This gives Japanese investors exposure to a sector that historically correlates weakly with domestic equities and bonds.
Potential for larger aviation funds – The partnership is a stepping stone toward a joint‑venture fund that could reach $1 billion in commitments, positioning Daiwa alongside recent Japanese‑backed aviation funds such as the $800 million Mercuria‑Daiwa vehicle announced earlier this year.
Risk‑adjusted diversification – Aircraft leases are secured by the underlying aircraft, which retain residual values of 70‑80% after a typical 10‑year lease term. This collateral structure offers a cushion against default, appealing to risk‑averse institutional investors.
Regulatory implications – The deal may prompt the Financial Services Agency to revisit guidelines on overseas alternative‑asset offerings, potentially easing distribution limits for Japanese broker‑dealers.
Overall, Daiwa’s stake in Airborne Capital signals a strategic push to diversify its asset‑management platform beyond traditional equities and bonds, tapping into a high‑yield, globally diversified niche that could become a core pillar of Japan’s alternative‑investment market.
Sources: Nikkei Asia, Aviation Leasing Association 2025 report, Daiwa Securities Group press release (May 2026).
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