HedgeCo.Net — BBAM, one of the world’s largest and longest-standing aircraft lessors, announced the final close of Incline Aviation III, its third flagship aviation fund, with more than $1.7 billion of total capital commitments. The fund drew support from a mix of existing and new institutional investors.
Incline Aviation III follows the strategy refined by its predecessors, targeting opportunities across commercial aviation, including aircraft, engines and related credit. The new vehicle steps up in size from Incline Aviation I, which had $1.2 billion of commitments including affiliated co-investment, and Incline Aviation II, which raised $1.5 billion.
The fund is already well into deployment. BBAM said more than $625 million of equity had been invested and committed as of June 2026, equal to about 37% of the final fund size. “Our focus remains on deploying capital selectively into opportunities where our experience, scale and global aviation relationships can create meaningful value,” said Steve Zissis, BBAM’s president and chief executive.
For allocators, leased commercial aircraft sit at the intersection of real assets and private credit: contracted lease cash flows, hard collateral with a global secondary market, and returns tied to airline demand rather than to equity market beta. A third fund that is larger than each of its predecessors suggests institutions continue to value that profile from an experienced lessor.
BBAM provides fleet and financing solutions to more than 100 airline customers in over 50 countries, manages more than 500 aircraft and employs over 150 aviation professionals across offices in Dallas, Dublin, Puerto Rico, San Francisco, Seoul, Singapore, Tokyo and Zurich.