FIRM OVERVIEW
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CONFIDENTIALIT Y / DISCLAIMER Z/C Aviation Partners, LLC (“Z/C”) makes no representation or warranty as to the accuracy or completeness of the data and information gathered by Z/C and contained in this briefing. Each party considering a potential business arrangement or investment managed by Z/C (the “Transaction”) shall be solely responsible for the evaluation of the material contained herein and its decision relating thereto. Z/C, its members, managers, officers, employees and advisers do not assume any obligation, duty or liability in contract, tort or otherwise, and in no circumstances shall Z/C and its members, managers, officers, employees or advisors be liable to any party or potential party, for losses (whether direct or indirect) which might be suffered or incurred by that party in connection with the Transaction, howsoever arising. The information contained herein has been compiled by Z/C to assist interested parties in making their own evaluation of the Transaction and does not purport to be all-inclusive or to contain all of the information that a prospective institution may desire. Each recipient of the information and data contained herein should perform his or her own independent
investigation and analysis of the Transaction and should obtain independent economic and legal advice on such matters. This information and data are not a substitute for the recipient’s independent evaluation and analysis. Z/C has provided this information on a confidential basis and expects it to be used for the sole purpose of analysis of the Transaction described herein. By receipt of the attached material, the recipient agrees that the information contained herein will be kept confidential and shall not, without prior written consent from z/c, be disclosed by the recipient in any manner whatsoever, in whole or in part, except to its agents, employees, and representatives who need to know the information for the purpose of evaluating the proposed transactions and who are informed of the confidential nature of the information, and shall not be used other than in connection with the transactions described herein. The recipient shall be responsible for any breach of this confidentiality by its agents, employees and representatives. At the request of Z/C, the recipient shall return all materials supplied by Z/C as soon as possible.
EXECUTIVE SUMMARY Z/C AVIATION PARTNERS, LLC (“Z/C”) IS A PRIVATE INVESTMENT GROUP BACKED BY A FORBES 400 FAMILY OFFICE. Z/C PRINCIPALS HAVE DEEP INDUSTRY EXPERIENCE EXECUTING SPECIAL SITUATION, OPPORTUNISTIC INVESTMENTS IN VARIOUS SEGMENTS OF THE AVIATION INDUSTRY AND HAVE DEPLOYED MORE THAN $1 BILLION IN BUSINESS AND COMMERCIAL AVIATION. Z / C P R I N C I PA L S H AV E B E E N I N V O LV E D I N NUMEROUS TRANSACTIONS INCLUDING: • • • •
Commercial aircraft and engine leasing Aircraft and engine disassembly and part sales Airline bankruptcy restructuring Restructured aircraft and airline backed securities, including PTCs, ETCs, and aircraft deficiency claims.
T E A M E X P E RT I S E THE Z/C TEAM EMPLOYS ITS EXPERTISE ACROSS THE SPECTRUM OF AVIATION INVESTMENT OPPORTUNITIES, AND PRINCIPALS HAVE A STRONG TRACK RECORD OF GENERATING OUTSIZED RETURNS ACROSS SEVERAL INDUSTRY CYCLES. • Significant experience in the aviation industry and strong network with airlines, lessors, lenders, and investors. • Knowledge of the “intrinsic value” of an aircraft ability to assess hidden value and liabilities. • Ability to react quickly to market opportunities to acquire the aircraft and or related securities. • Credibility in the marketplace through relationship with key former executives at major aircraft OEM and airlines. • Pro-active management of exposure and constant assessment of options for early exits. • Detailed credit and analytical underwriting process.
INVESTMENT THESIS The current macro-environment presents a unique environment to make investments in real assets with low correlation to traditional asset classes. Z/C is now seeking aircraft leasing opportunities which generate attractive risk-adjusted returns from a combination of current yield (lease revenue) and residual values (underpinned by intrinsic/part-out value of aircraft). Leased aircraft benefit from downside protection provided by the long-lived lift of the asset; pro-active asset management to minimize disruptions and maximize residual values; aircraft can be re-deployed to preserve cash flow stream - remarketing to stronger
airlines capitalizing on market distress, or redeploying aircraft to regional markets enjoying more robust economic activity. Z/C and team have been successful pursuing transactions with strong “option value” – each transaction is underwritten following an extensive credit and technical review, and pro-forma returns assessed based on multiple realization options (early exit based on improved market values, credit arbitrage, enhanced recovery following conversion from passenger to freighter configuration, maximization of part-out value).
TEAM The existing Z/C team have extensive experience investing in and managing aviation assets, including asset acquisitions, asset financing, lease structuring, credit analysis, asset marketing, equipment valuation and asset dispositions. The team possesses an extensive network of relationships within several segments of the industry, including: individual aircraft investors, brokers, advisors, passenger and freight airlines, aircraft leasing companies, lending institutions, insurance companies, maintenance repair organizations and original equipment manufacturers.
PA RT N E R S ZIKI SLAV is responsible for transaction sourcing, analysis, and structuring. Prior to co-founding Z/C Aviation, Mr. Slav led aviation investment efforts for the master portfolio at Marathon Asset Management, a New York based credit-focused hedge fund, where he generated outsized returns every year on a portfolio of approximately $800 million. Mr. Slav’s expertise includes investing in stressed and distressed aviation assets, and he has been an active participant in the bankruptcy restructuring of major carriers, including Delta, Northwest, United, Air Canada, and American Airlines. From 1997 until 2003, he was a high-yield credit research analyst with Wasserstein Perella & Co. (Institutional Investor award in 2002). Mr. Slav holds an MBA from the University of Chicago and degrees in Law and Accounting from Tel Aviv University in Israel. CAREY ROBINSON WOLCHOK is the Co-Founder and Managing Director of the
Perilune Group a Forbes 400 Family Office with holdings in hedge funds, distressed debt, private equity, and real estate. He is responsible for all strategic partnerships, including co-founding Z/C Aviation Partners, LLC with Mr. Slav. Mr. Wolchok began his career in the early 1990s trading commercial jet engines and aircraft at one of the largest independent lessors of Pratt & Whitney engines, later joining AeroEquity, the Savannah, Georgia based private equity group led by the late Chairman and CEO of GE Aircraft Engines, Brian Rowe. Mr. Wolchok was also the Co-Founder and Chairman of Avocet Aircraft, where he formed a joint venture with Israel Aircraft Industries to develop the Avocet ProJet corporate jet. Wolchok graduated summa cum laude from the University of Florida and received his MBA in Aviation from Embry Riddle Aeronautical University.
P R I N C I PA L S DAVID IZHAKOFF is responsible for execution of and supervising all legal and administrative functions. He plays a key role in structuring, negotiating, and executing transactions. David Izhakoff was a senior attorney at Schulte Roth & Zabel, where his practice in corporate securities focused on mergers and acquisitions, hedge funds, capital formation, and private placements. Mr. Izhakoff also served as General Counsel to Avocet Aircraft, an international jet aircraft joint venture with Israel Aircraft Industries. Mr. Izhakoff holds a BA from Brandeis University, a JD from New York University, and an MS from London School of Economics.
JOE THORSTENSON is responsible for sourcing and analyzing investment opportunities and aircraft remarketing. Prior to joining Z/C Aviation, Joe was a Principal at SkyBlue Capital where he advised on approximately $700 million in aircraft related financings with both legacy and low cost carriers. Prior to SkyBlue Capital, Mr. Thorstenson was an analyst at AirCastle, where he focused on structuring, pricing, and marketing. Mr. Thorstenson holds a BBA in finance from Western Michigan University.
ADVISORS PETER SORKIN is the Managing Director of Air Finance Advisors, Ltd. Over the course of his career, Peter has been involved in excess of two hundred aircraft trades, facilitating the purchase or disposition of portfolios and individual assets. Following tenures at Banc of America Leasing and Knight Capital Group, Peter founded AirFinance Advisors Ltd to focus on developing investment capital for private financing transactions. He has enjoyed the opportunity to bridge traditional aircraft leasing with institutional investors who provide capital for private investment transactions. Peter has a MBA from Northwestern University and holds a CPA certificate.
BENOIT DEBAINS, an aviation leader for the past 28 years, is presently a Managing Director with Skyworks Capital. Throughout his career, Benoit has held numerous international executive positions in the aviation industry - most recently, as Chief Executive Officer at OnAir, a joint venture between SITA and Airbus, a position he held since 2007. Prior to this, he spent 25 years with Airbus SAS, rising to Senior Vice President of Finance. As an expert in worldwide aircraft finance, Benoit defined, implemented and led the Airbus customer finance strategy for over 14 years, including being responsible for the establishment, and subsequently for the management of Airbus Financial Services (“AFS�). Benoit has played a central role in the launch campaigns for the majority of Airbus aircraft, and supported Airbus customers across various industry cycles.
S T R AT E G I C PA RT N E R S
CONTACT PETER SORKIN (847) 239-7149 psorkin@airfinanceadvisors.net