Turning Rock Partners and AerFin Close Second Asset-Backed Financing, Backed by Three Airbus A220 Aircraft
Why It MattersThe deal shows aftermarket parts financing increasingly relying on structured, collateral-backed transactions that pair private capital with specialist teardown operators to unlock used serviceable material supply.
What happened
Turning Rock Partners (TRP), a New York-based private investment firm, has completed its second asset-backed financing with AerFin Limited, a global aircraft and engine parts aftermarket solutions provider. The transaction is collateralized by three Airbus A220 aircraft.
Under the terms of the deal, the aircraft will remain in operation for an interim period, after which the engines will transition to long-term lease arrangements and the airframes will be disassembled. AerFin will manage the teardown, maintenance, and parts distribution processes.
Sha Khoja, Head of Credit at Turning Rock Partners, said the transaction "represents a natural extension of our partnership and demonstrates the strength of combining disciplined underwriting with an aligned operating partner to pursue attractive risk-adjusted returns with downside protection, underpinned by owned collateral." Simon Goodson, CEO of AerFin, noted that the company is the first independent provider to bring A220 used serviceable material to market, adding, "We're helping to create new sources of supply for operators and lessors, improving availability and providing customers with greater flexibility."
Investec Aviation Finance provided debt financing for the transaction. Holland & Knight served as U.S. legal counsel, Matheson LLP as Irish legal counsel, and Stream Avocats & Solicitors Paris as French legal counsel. Shannon Technical Services provided collateral assessment and technical and physical inspection services.
Industry impact & what to watch
This transaction belongs to a growing category of financing structures in which private credit firms lend against physical aircraft assets rather than corporate balance sheets, using the eventual teardown value of engines and parts as the underlying security. Pairing a capital provider like Turning Rock with an operating specialist like AerFin lets the lender rely on a partner with direct access to teardown, maintenance, and parts distribution channels to realize that value.
In the used serviceable material segment, availability of parts for newer aircraft types has lagged fleet growth, since a large donor-aircraft pool typically takes years to build. AerFin's position as the first independent provider bringing A220 material to market suggests that pool is now large enough to support disassembly economics for that type, giving operators and lessors an additional sourcing option alongside OEM channels.
What happens to the interim operating period, and how quickly the three aircraft move from service into engine leasing and teardown, will indicate how repeatable this financing structure is for other aircraft types as TRP and AerFin's partnership continues.
