Merit AirFinance Launches as New Aviation Lending Entity
Deal News | Aug 12, 2025 | Castlelake LP
Castlelake L.P., a global alternative investment manager, announces the establishment of Merit AirFinance, a new aviation lending business. As an independent subsidiary, Merit AirFinance will offer flexible debt capital to airlines and leasing companies for their aviation assets. With over $5 billion deployed since 2020, Castlelake underscores its commitment to innovation in the aviation lending space. Patrick Mahoney, formerly of Castlelake's aviation capital markets, will lead Merit AirFinance, while Jakob Gallagher steps into his previous role. Launching with $1.8 billion in committed capital, Merit aims to build on Castlelake's track record of providing comprehensive financial solutions in the aviation industry.
Sectors
- Aviation Financing
- Alternative Investment Management
Geography
- Global – Castlelake is a global investment manager with operations and investments across North America, Europe, the Middle East, and Asia.
Industry
- Aviation Financing – The article discusses the launch of an aviation lending entity, Merit AirFinance, which caters to debt capital needs of airlines and leasing companies.
- Alternative Investment Management – Castlelake operates within the alternative investment management sector, specializing in asset-based private credit.
Financials
- $1.8 billion – The amount of committed capital Merit AirFinance launches with.
- $5 billion – The total amount Castlelake has deployed in aviation lending since 2020.
- $22 billion – The approximate amount of assets managed by Castlelake.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Castlelake L.P. | Parent Company | Company | A global alternative investment manager specializing in asset-based private credit. |
| Merit AirFinance | Target Company | Company | A newly formed aviation lending business providing debt capital to airlines and leasing companies. |
| Patrick Mahoney | President | Person | Head of Merit AirFinance, transitioning from Castlelake's aviation capital markets function. |
| Jakob Gallagher | New Head of Aviation Capital Markets | Person | Joins Castlelake to lead the aviation capital markets function after Patrick Mahoney's transition. |
| Brookfield Asset Management Ltd. | Strategic Partner | Company | A leading global alternative investment manager and strategic partner of Castlelake. |