On January 6, 2026, Willis Lease Finance Corporation (NASDAQ: WLFC), a prominent player in the commercial aircraft engine leasing and aviation services sector, announced the formation of a new asset management division named Willis Aviation Capital (WAC). This strategic initiative aims to enhance the management of third-party assets and capitalize on discretionary funds, marking a significant step forward in WLFC's operational framework.

2. Objectives of the New Division

The primary objective of WAC is to oversee aviation asset portfolios predominantly financed by third-party capital. By creating this platform, WLFC expects to generate recurring management fees, carried interest, and servicing revenues, further solidifying its asset management footprint while assisting in balance sheet deleveraging.

Austin C. Willis, the Chief Executive Officer of WLFC, emphasized the potential of WAC to provide attractive returns to its partners by leveraging WLFC’s established leasing and services platform.

3. Strategic Partnerships

WLFC has secured partnerships with several leading institutional investors to support the launch of WAC. Notably, the company has formed a leasing partnership with Blackstone Credit & Insurance, amounting to $1 billion, alongside a credit strategy with Liberty Mutual Investments for up to $600 million. Both partnerships will be managed in collaboration with WAC, signifying a robust approach to asset management.

In addition to these new partnerships, WAC will also manage WLFC's existing joint ventures with Mitsui & Co. and China Aviation Supplies Company, as well as selected third-party aviation assets that do not involve WLFC's equity interests.

4. Key Features of WAC's Structure

The newly formed WAC is set to enhance WLFC's return profile through several key features:

Durable Income Streams: The division will focus on generating recurring revenue from institutional funds, joint ventures, and selected aviation assets, ultimately driving shareholder value.

Increased Volume of Aviation Assets: WAC will oversee a greater volume of aviation assets serviced across WLFC’s various business operations, including:

Willis Aeronautical Services, Inc. (WASI): Specializing in engine materials.

Willis Engine Repair Centers® (WERC®): Providing engine maintenance, repair, and overhaul (MRO) services in the U.S. and U.K.

Willis Aviation Services Limited (WASL): Focused on airframe maintenance and teardown services.

Willis Mitsui & Co. Asset Management Limited (WAML): Offering consulting and Continuing Airworthiness Management Organisation (CAMO) services.

Willis Global Engine Testing (WGET): A test cell joint venture aimed at enhancing engine testing capabilities.

Enhanced Transaction Scale: The WAC structure will enable WLFC to engage in more programmatic investments, thereby increasing lessee diversification.

5. Leadership Team

Brian R. Hole has been appointed as the Global Head of Managed Funds and Credit for WAC. Having joined WLFC in 2014 as Chief Investment Officer and serving as President since 2016, Hole brings a wealth of experience to this new role. Additionally, Dan Coulcher, who previously held the position of Chief Commercial Officer for WLFC in EMEA, has been named Senior Vice President of Joint Ventures, reporting directly to Hole.

Brian R. Hole expressed enthusiasm about the launch of WAC, highlighting the strength derived from WLFC's diverse professional experience. He noted that the new platform positions WLFC to capture incremental demand in engine leasing, lending, maintenance services, and associated programs.

6. Conclusion

The establishment of Willis Aviation Capital marks a pivotal development for Willis Lease Finance Corporation as it seeks to broaden its asset management capabilities and enhance shareholder value. With strong institutional partnerships and an experienced leadership team at the helm, WAC is poised to become a significant player in the aviation asset management landscape. As WLFC continues to innovate and adapt to market demands, the aviation sector is likely to witness enhanced service offerings and investment opportunities that stem from this new initiative.

Original press release