Sumitomo, SMBC Aviation, Apollo and Brookfield to Take Air Lease Private in All-Cash Deal

09/02/2025 – 06:10 AM

Leading investors with a long-term strategic focus deliver transformational transaction for the aircraft leasing sector

• Sumitomo Corporation, SMBC Aviation Capital, Apollo and Brookfield have reached a definitive agreement to acquire Air Lease Corporation through a newly established entity, Sumisho Air Lease Corporation (Ireland) DAC

• Air Lease will be renamed Sumisho Air Lease Corporation (“Sumisho Air Lease”) and its orderbook is expected to transfer to SMBC Aviation Capital as part of the transaction; SMBC Aviation Capital will act as a servicer to Sumisho Air Lease’s portfolio

• Apollo and Brookfield to provide capital to support the acquisition, joining Sumitomo Corporation and SMBC Aviation Capital as aligned investors

• Sumisho Air Lease will be optimally positioned to capitalise on airline and investor demand in a supply constrained environment

• Sumisho Air Lease is expected to be an investment-grade rated aircraft lessor with a globally diverse group of airline customers and portfolio of new technology aircraft

NEW YORK & DUBLIN & TOKYO –(BUSINESS WIRE)–
In a move poised to reshape the aircraft leasing landscape, Sumitomo Corporation, SMBC Aviation Capital, Apollo managed funds (“Apollo”), and Brookfield have announced a definitive agreement to acquire Air Lease Corporation (“Air Lease”), a prominent aircraft lessor spearheaded by Steven F. Udvar-Házy and John L. Plueger. Air Lease boasts a portfolio largely composed of next-generation aircraft. Post-acquisition, Air Lease will be rebranded as Sumisho Air Lease, a newly formed entity. Apollo and Brookfield are set to inject capital to facilitate the deal.

The agreement stipulates that Air Lease common stockholders will receive $65.00 per share in cash. This translates to a total enterprise value of approximately $7.4 billion, ballooning to roughly $28.2 billion when factoring in the debt obligations to be assumed or refinanced, net of existing cash. The cash consideration underscores a premium of 7% over Air Lease’s peak closing stock price recorded on August 28, 2025. It also marks a 14% premium over the volume-weighted average share price during the 30 trading days leading up to August 29, 2025, and an even more compelling 31% premium over the volume-weighted average share price for the 12-month trading period ending on the same date.

Sumisho Air Lease’s establishment as a seasoned aircraft lessor, combined with SMBC Aviation Capital’s proficiency, will introduce pivotal scale and financial muscle. This strategic synergy aims to effectively navigate the progressively intricate demands of airline clients. Sumisho Air Lease is also poised to reap the rewards of Sumitomo Corporation and SMBC Aviation Capital’s in-depth knowledge and unwavering dedication to the aviation leasing domain.

Takao Kusaka, Group CEO, Transportation & Construction Systems Group of Sumitomo Corporation, remarked:

“We are honoured to have reached this significant agreement together with SMBC Aviation Capital, Apollo and Brookfield.

“This transaction will enable us to scale our operations significantly and increase profitability. It positions the Sumitomo Corporation Group’s aircraft leasing business as a global leader, measured by both owned and managed aircraft, thanks to Sumisho Air Lease’s highly attractive fleet of new tech aircraft.

“This strategic move will bolster our industry leadership and amplify our competitive edge. Sumisho Air Lease will form a critical link in the Sumitomo Corporation Group’s broader aviation investments, paving the way for potent new synergies.”

Peter Barrett, Chief Executive Officer of SMBC Aviation Capital, added:

“This transaction is transformational for our business and the leasing landscape. Investing in Sumisho Air Lease, purchasing their orderbook and becoming servicer to the substantial majority of Sumisho Air Lease’s portfolio will enable us to deploy our financial scale and strength to meet the evolving needs of our customers and take a strategic lead in reshaping our sector.

“In our sector, economies of scale matter. Our industry is evolving at pace and requires significant and diverse pools of capital so that our airline and investor customers can be provided with the products and services they need.

“As one of the most well-regarded leasing platforms, with a portfolio focused on liquid, in demand, new tech aircraft, Air Lease presents an attractive opportunity for the co-investors.”

Jamshid Ehsani, Partner, Apollo, stated:

“Apollo’s partnership with SMBC Aviation Capital and Sumitomo Corporation is a testament to our core principle of delivering tailor made, scaled and innovative capital solutions to corporations. This important industry transaction highlights the flexibility of the Apollo’s long-term insurance capital and our creative approach to high-grade capital solutions. Apollo has a distinguished and established track record in aviation investing, led by our industry experts at Perseus Aviation, and we are pleased to deliver the full strength of the Apollo ecosystem to the success of this transaction.”

Craig Noble, CEO of Brookfield Credit, commented:

“We are pleased to partner with SMBC Aviation Capital and Sumitomo Corporation in this landmark transaction, which highlights Brookfield’s ability to provide hybrid solutions in an environment with a growing need for private capital. By combining our credit expertise, industry insight, and large-scale capital with the strengths of our strategic partner manager, Castlelake—a leader in aviation investing—this transaction demonstrates the value of flexibility and scale in today’s market.”

Additional Transaction Details

SMBC, Citi, and Goldman Sachs Bank USA have committed $12.1 billion in financing for the deal.

Sumisho Air Lease anticipates securing investment-grade ratings from S&P, Fitch, and Kroll.

The Air Lease Board of Directors has unanimously greenlit the agreement. The transaction, contingent on customary closing conditions—including Air Lease stockholder approval and specific regulatory clearances—is expected to finalize in the first half of 2026. Air Lease’s directors and certain executive officers have committed to voting their shares in favor of the transaction.

Advisors

Citigroup Global Markets Limited and Goldman Sachs International are serving as financial advisors to SMBC Aviation Capital. Davis Polk & Wardwell LLP and McCann Fitzgerald are the legal advisors to SMBC Aviation Capital. Goldman Sachs Japan and Citigroup Global Markets Japan are the financial advisors to Sumitomo Corporation, with Norton Rose Fulbright acting as the legal advisor. Milbank LLP is serving as legal advisor to Apollo and Brookfield.

Notes to editors

About Sumitomo Corporation

Sumitomo Corporation (TYO: 8053) is a powerhouse in global trading and business investment, operating with a sprawling network of 127 offices across 64 countries. The Sumitomo Corporation Group, consisting of roughly 500 companies and 80,000 employees, drives business across Steel, Automotive, Transportation & Construction Systems, Diverse Urban Development, Media & Digital, Lifestyle Business, Mineral Resources, Chemicals Solutions, and Energy Transformation sectors. Steeped in a 400-year-old business philosophy, Sumitomo Corporation aims to enrich lives and the world.

About SMBC Aviation Capital

SMBC Aviation Capital is a leading aircraft lessor by fleet size, backed by shareholders Sumitomo Mitsui Financial Group and Sumitomo Corporation. The company serves a high-quality global airline clientele and boasts a portfolio comprised of 87% narrow-body aircraft and 73% new technology models based on net book value. With a strong capital position and A- and BBB+ ratings from S&P and Fitch respectively, the company reflects solid long-term business strength. For more, visit: https://www.smbc.aero/.

About Apollo

Apollo is a global alternative asset manager targeting high growth. In asset management, their goal is to deliver superior returns at every risk-reward point, from investment-grade credit to private equity. With over three decades of expertise, Apollo’s integrated platform meets the financial needs of clients and provides growth-driving capital solutions. Through Athene, their retirement services business, they help clients secure their financial future through retirement savings products and solutions. Apollo aligns its patient, informed investing approach with clients, businesses, employees, and communities for shared opportunity and positive outcomes. Apollo had approximately $840 billion in assets under management as of June 30, 2025. To learn more, visit www.apollo.com.

About Brookfield

Brookfield Asset Management (NYSE: BAM, TSX: BAM), headquartered in New York, is a leading global alternative asset manager managing over $1 trillion in assets. Brookfield invests client capital for the long term, specializing in real assets and essential service businesses that form the global economy’s foundation. They offer various alternative investment products to investors worldwide, including pension plans, endowments, sovereign wealth funds, financial institutions, insurance companies, and private wealth investors. Brookfield leverages its ownership and operating heritage to invest for value and generate robust returns across economic cycles.

Brookfield Credit manages approximately $332 billion in assets as of August 6, 2025, focusing on private credit investment strategies, including infrastructure, renewables, real estate, asset-backed, and corporate credit. Return profiles range from investment grade to opportunistic. The business combines Brookfield’s substantial direct investment platform, built over decades, with strategic partners like Oaktree Capital Management and Castlelake. As one of the most experienced credit managers, Brookfield Credit provides flexible capital solutions and seeks attractive risk-adjusted returns. For more, visit www.bam.brookfield.com.