PLANS TO launch the first global specialty finance company focused on the helicopter and private jet market, Milestone Aviation, will see the creation of 40 new jobs at the firm’s headquarters in Dublin.
Milestone, which has been established by two former NetJets executives, will provide helicopter and private jet owners and operators worldwide with personalised financing options.
According to chief executive William Kelly, former chief of NetJets Europe, the company’s goal is not to provide helicopters for “ferrying property developers to the Galway races”. Rather it aims to meet the growing demand for such services from companies operating in sectors such as oil and gas exploration and production, search and rescue, forestry, mining, and utility work.
To date, the company it has raised $500 million in equity capital in a fundraising deal led by US middle-market private equity firm The Jordan Company, in partnership with fellow private equity firm Nautic Partners.
“We needed a sum large enough to help us play globally,” said Mr Kelly, adding that the firm will seek additional debt/equity financing within 12-24 months.
Milestone will use the funds to acquire and lease helicopters and business aviation aircraft, and is in advance discussions with a number of manufacturers regarding making purchases. According to Mr Kelly, the plan for the firm is to build a portfolio worth billions within three to four years.
A global company, Milestone chose Dublin for its headquarters due to its global reputation as a centre for aviation finance.
“For aviation leasing there is only one place to be based, and that’s Dublin,” said Mr Kelly, who highlighted the importance of the skill set built up in Ireland as well as the tax infrastructure in place.
The company will launch with a staff of four, but Mr Kelly expects job numbers to ramp up to about 40 within 18 to 24 months.
While Milestone is very bullish on its prospects, it will be operating in a difficult sector, and its launch comes on the back of financier Domhnal Slattery’s failure to date to get his executive jet business, JetBird, off the ground.
The firm has close links with private jet company NetJets, founded by Milestone chairman Richard Santulli.
NetJets, which pioneered the fractional ownership model, has been through some turbulent times and was described by investment guru Warren Buffet, who owns the firm through his investment vehicle Berkshire Hathaway, as “the major problem for Berkshire” in 2009, having lost some $157 million during Berkshire’s 11 years of ownership.
