THORA CAPITAL

Thora Capital is a specialized alternative asset manager dedicated to aviation financing, with its private equity vehicles primarily focusing on helicopter assets. It is poised to assume the role of an additional capital partner for helicopter lessors and operators, providing them with a broad spectrum of stress-free financing options to better respond to market opportunities.

“Helicopters represent a niche and nascent asset class. Despite stable cash flows, low volatility, and little connection to traditional or alternative assets, helicopter leasing has been overlooked by the investment community due to the fragmented nature of the operating industry,” says Russell Christopher, managing director, Thora Capital. “Though there are seemingly countless operators, the fewer number of financiers and subsequent smaller capital pool lead them to vie for their share of the pie.”

Limited data availability for pricing aircraft models or historical transaction activity add to the challenges of finding a trusted financial partner. To put things into perspective, helicopter operators devising a fleet expansion typically approach banks for capital. These traditional financial institutions are bogged down with rigid policies relating to borrower creditworthiness requirements and numerous restrictions that hinder them from financing specific aircraft types and models. Operators also partner with helicopter lessors who often have a fleet plan that is narrow in scope, leaving their expansion needs unaddressed. These lessors are also on the lookout for capital partners as an indirect method to finance new aircraft.

As a dedicated aviation fund manager, Thora Capital emerges as a natural alternative financier for operators in these scenarios. The firm aims to provide a predictable cost of capital for operators and separately collaborates with helicopter leasing firms to optimize their fleets and attract investments. Furthermore, lenders demonstrate an eagerness to work with Thora because of anticipation of repeat business that they are typically unable to source beyond the local and regional helicopter operators with whom they may have an existing relationship.

Thora Capital’s primary product is an operating lease, but it provides alternative financing options contingent on aircraft collateral. It’s free from stringent creditworthiness prerequisites and can finance almost all aircraft types. These flexible financing options are rooted in its ability to underwrite investments and adjust risks based on the aircraft in question.

“We’re not a rigid traditional bank, nor are we strictly a leasing company; we’re a fund manager who uses the operating lease as an investment vehicle,” says Christopher.

Its customer spectrum spans large operators requiring sophisticated financial solutions and smaller, regionally-focused ones in need of guidance on the capital-raising strategies for new aircraft acquisitions. Each financial product is customized to suit clients’ requirements, accommodating operators of all sizes and scales.

A typical client engagement at Thora Capital starts with an extensive credit analysis. It conducts a two-part assessment where the team deep-dives to understand their fleet strategy, expansion plans, financials, and cash flow positions. A comprehensive analysis of aircraft type, its market value, and overall conditions related to airworthiness is also performed.

The insights gleaned spotlight a client’s approach for incoming (new aircraft) and outgoing (existing ones in line for replacement or retirement) fleets, which are used to underwrite the financing offer. When accepted, it proceeds with due diligence and completes the transaction.

Thora Capital’s financing offerings comprise sale-leaseback equity transactions, pre-delivery payment facilities, senior term loans for new deliveries, refinancing term debt for used aircraft, and capital sourcing. One of its distinctive offerings is the sale-leaseback option. Operators can sell used aircraft—which they intend to dispose of after ten years—to the firm and lease it back for the same period. This approach gives operators an easier way to secure funds while providing a painless path to bringing versatility to their fleet.

Its ability to wear multiple hats in the aircraft financing industry makes it an ideal partner for this niche. Now, the current market climate is ripe with more deal activity, and the need for better financing options is higher than ever. Thora Capital stands as a trusted, value-added capital partner, given its role as a fund manager that aligns well with the industry growth trajectory.