Willis Lease Finance Corporation (WLFC) and Blackstone Credit & Insurance (BXCI) announced a strategic partnership on January 5 2026 to deploy more than $1 billion in aircraft engine leasing over the next two years. The deal will focus on current and next‑generation aircraft engines and select aircraft, leveraging WLFC’s deep expertise in engine leasing and BXCI’s asset‑based credit platform.
The partnership is structured with BNP Paribas acting as the sole structuring agent and advisor to BXCI, underscoring the transaction’s complexity and the need for sophisticated capital deployment. WLFC will use the capital to expand its engine portfolio, including a seed portfolio and a near‑term pipeline of high‑quality engine assets, while BXCI gains exposure to the aviation hard‑asset market as part of its broader strategy to reach $1 trillion in assets under management across its credit and insurance groups.
WLFC’s recent financial performance highlights the strategic importance of the infusion. Revenue has grown year‑over‑year, but gross margin fell 4 % and operating margin dropped 16 % in the latest reporting period, and the company’s Altman Z‑Score indicates potential financial stress. The capital from BXCI is expected to support margin recovery and fund growth initiatives while providing a buffer against market volatility.
Blackstone’s investment rationale centers on programmatic, long‑term credit exposure to aviation hard assets. BXCI’s Infrastructure and Asset‑Based Credit group managed over $100 billion as of September 30 2025, and the partnership aligns with Blackstone’s goal of expanding its credit portfolio and achieving a $1 trillion AUM target over the next decade. The deal also diversifies BXCI’s credit mix and strengthens its position in a high‑barrier, high‑return industry.
Management comments underscore the strategic fit. Willis CEO Austin C. Willis said the partnership “will accelerate the growth of our asset‑management business and demonstrate the strength of our engine‑leasing platform.” CFO Scott Flaherty added that the relationship “provides further capital diversification to the Willis platform.” Blackstone senior managing director Aneek Mamik noted that Willis “brings unparalleled technical expertise and a proven track record,” while principal Alex Buck highlighted the opportunity to “support the growth of their platform and deliver essential engine solutions for the global aviation fleet.”
The partnership delivers a significant capital injection that will accelerate WLFC’s engine‑leasing expansion, improve its balance‑sheet resilience, and broaden BXCI’s exposure to a stable, long‑term asset class. Together, the two firms aim to capture growth in the aviation leasing market while mitigating risk through diversified capital sources and deep industry expertise.
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