HI Uplift: ITE Management acquires Thora Capital
You wait ages for a bus before two arrive at once. It’s a particularly British phrase but one that neatly describes recent acquisitions in helicopter leasing.
This week, New York-based alternative investment firm ITE Management revealed its acquisition of Thora Capital – one of the largest private investment management firms focused on helicopter leasing. The deal follows last month’s acquisition of Macquarie Rotorcraft, the helicopter leasing division of Australian bank Macquarie by joint venture partners Sumitomo Mitsui Finance and Leasing Corporation (SMFL) and lessor LCI.
My first question to Jason Koenig, co-founder and managing partner at ITE Management is a simple why? “We believe helicopter investing and finance offers attractive, stable cash yields that align with our investment philosophy and the expectations of our investors,” Koenig tells us. “Thora Capital brings a platform led by a responsive team known for thoughtful operational insights, problem solving and portfolio agility. Their data-centric investment methodology is aligned with our approach to identifying and managing transportation assets that enhance diversification and risk-adjusted return potential.”
Thora Capital’s portfolio of assets, said to be secured by long-term contracts, serves a range of providers including hospitals, municipalities and government agencies. The lessor’s services include capital sourcing, debt facilities, asset and portfolio management and asset disposal and divestment execution.
‘New asset classes’
For more than a decade, ITE has focused on investing in industrial transportation and infrastructure. It operates vertical investment strategies across railcars, intermodal transport, aviation and other segments, with a focus on diversification and resilience. “We continually evaluate opportunities to enter new asset classes that demonstrate strong fundamentals and long-term investor value,” says Koenig. “We believe helicopter finance represents such an opportunity, and we are pleased to expand into this segment with a team that shares our disciplined, data-driven approach.”
Matt Rothschild, co-founder and CEO of Thora Capital said the acquisition will enable the lessor to expand its services across a wider spectrum of business operations: “When Adam Gerchen and I launched Thora in 2018, we set out to build the premier asset manager dedicated to helicopter assets,” he said. “Joining ITE allows us to scale our expertise within a broader transportation investment platform.” The acquisition would enable the company to create new opportunities, enhance operational efficiencies and deliver greater value to investors, he added.
But will the (relative) shortage of helicopter assets limit the wider business’s expansion plans? The limited supply of certain helicopter models has led to the repurpose of asset types previously being phased out to meet ongoing demand, acknowledged ITE.
“Thora Capital’s ability to understand niche markets and apply creative and responsive financing solutions has enabled it to create great market penetration to support operators in these scenarios where others may not,” says Koenig. “Additionally, lease penetration in the helicopter sector remains significantly lower than in fixed-wing aviation, which we believe presents further opportunity for growth.”
‘Underserved by traditional finance providers’
Thora Capital has maintained a sector-agnostic view, focusing on “appropriately priced, risk-adjusted opportunities”, he adds. “However, demand remains strong in areas of the market underserved by traditional finance providers – particularly where expertise, flexibility, responsiveness and tailored capital solutions are required. This is where we believe Thora Capital’s strengths have consistently distinguished the firm.”
Sidley Austin is acting as legal adviser to ITE. Katten Muchin Rosenman is acting as legal adviser to Thora Capital. The terms of the deal remain confidential.
Initial reaction to the acquisitions of Thora Capital and Macquarie were both positive in welcoming new(ish) capital into the helicopter leasing sector. Clark McGinn, principal of consultancy Uplifting Advice and former senior vice president at Waypoint Leasing told us:“ It’s good to see new capital acquiring existing successful enterprise in the helicopter sector.”
One helicopter CEO at Verticon last month also welcomed Sumitomo Mitsui Finance and Leasing Corporation’s big investment to acquire Macquarie Rotorcraft in partnership with LCI.
‘Specific targets’
So, does ITE Management have more acquisition targets in mind? “We are continually evaluating strategic opportunities that complement our platform,” Koenig tells us. “While we do not comment on specific targets, funds and historical performance, we remain focused on identifying investments that align with our core strengths and deliver long-term value to our investors.”
Meanwhile, unsurprisingly, LCI remained equally non-committal about a second raid on its war chest after the Macquarie acquisition. “Every company is opportunistic and keeps an eye on the market,” Jaspal Jandu, CEO, LCI told us last month. “But right now, we are totally focused on closing and executing this latest deal.”
After two (helicopter buyers’) buses stopped for acquisitions in the past month, can we expect any more investors to make similar stops in the near future? (Independent helicopter adviser and appraiser Alastair Fallon thinks aerial fire fighting might become more of an attractive investment). Please tell us what you think.
Plus, please help us give credit where credit is due by nominating candidates for our Helicopter Investor Deal of The Year Awards.
HI Uplift Dashboard: Helicopters for sale
Multi engine
- Total for sale/lease: 280 – three fewer than last week
- Percentage for sale/lease: 3.74
- Absorption rate: 3.82 months
- Total fleet: 7,485 – three more than last week.
Single engine
- Total for sale/lease: 423 – three fewer than last week
- Percentage for sale/lease: 3.66
- Absorption rate: 3.95 months
- Total fleet: 11,573 – eight fewer than last week.
Source: Amstat, April 3rd, 2025.
