Daiwa Securities Deepens Airborne Capital Alliance with Strategic Stake

TOKYO & DUBLIN – May 20, 2026 – Daiwa Securities Group Inc. has significantly escalated its commitment to the booming aircraft leasing sector, announcing a strategic capital participation in Irish-based specialist Airborne Capital Limited. The move cements a burgeoning partnership and signals a major push by the Japanese financial giant to offer sophisticated, asset-backed investments to its clients.

Under the terms of the agreement, Daiwa will acquire an initial 10% voting interest in Airborne Capital, with warrants that could see its stake double to 20% in the future. The Japanese firm will also subscribe to subordinated notes and nominate a director to Airborne Capital's board, transitioning the relationship from a business alliance to a deeply integrated capital partnership.

This investment is the culmination of a collaboration that began in 2024. The two firms previously launched Daiwa Airborne Co., Ltd., a joint venture focused on providing Japanese Operating Lease (JOL) products to ultra-high-net-worth individuals, which commenced operations in January 2025. They followed this by launching an open-ended aircraft fund for institutional investors in early 2026.

"By delivering new value to society, these initiatives will also contribute to the realization of Japan as a leading asset management center," stated Akihiko Ogino, President and CEO of Daiwa Securities Group, highlighting the deal's strategic importance beyond mere financial returns. He emphasized the goal of maximizing customer asset value through differentiated investment opportunities.

For Airborne Capital, the deepened alliance provides a powerful foothold in a key global market. "This provides us with a strong foundation to grow our footprint in Japan, a key market in our global growth strategy," said Ramki Sundaram, CEO of Airborne Capital. "By combining Daiwa Securities’ high-value, customer-centric solution delivery with Airborne Capital’s deep aviation expertise, we aim to expand our offering of highly specialized aircraft leasing products in Japan."

Riding the Tailwind of a Red-Hot Market

The strategic rationale behind Daiwa's investment is anchored in the powerful dynamics currently shaping the global aviation industry. The sector is experiencing a unique confluence of soaring demand and severely constrained supply, creating a fertile ground for aircraft lessors.

Global air travel has rebounded robustly from its pandemic-era lows, with passenger demand in 2024 surpassing pre-pandemic levels. The International Air Transport Association (IATA) projects continued growth, particularly from emerging markets. This surge in travel has airlines scrambling for aircraft to meet passenger demand.

Simultaneously, the supply of new aircraft is bottlenecked. Major manufacturers like Boeing and Airbus are struggling with production ramp-ups, plagued by persistent supply chain disruptions and stringent quality control mandates. The result is a historic order backlog of over 17,000 jets, representing more than a decade of production at current rates. This has created an estimated shortfall of nearly 5,000 aircraft between 2019 and 2025.

This supply-demand imbalance has made aircraft a prized asset. Airlines are forced to extend leases on their existing fleets, keep older planes in service longer, and turn to the leasing market to secure capacity. Consequently, lease rates for popular narrow-body jets have jumped by 20-30% since 2019, and the value of second-hand aircraft is strengthening. For investors, this translates into an attractive asset class offering stable, long-term cash flows from lease payments and the potential for significant capital appreciation, all while providing a natural hedge against inflation.

Daiwa's Strategic Push into Alternatives

Daiwa's move is a calculated step in its broader strategy to diversify its offerings and capture growth in alternative investments. As Japan's economy emerges from a long period of low growth, and with inflation and changing interest rates becoming a reality, investors are increasingly seeking sources of stable, non-correlated returns.

Aircraft, as tangible real assets, fit this profile perfectly. The partnership allows Daiwa to leverage Airborne Capital's specialized expertise to offer a suite of sophisticated aviation-related products across its client spectrum:

• For Institutional Investors: Daiwa's asset management arms will now actively promote and participate in the MACH OE open-ended aircraft fund. This provides pension funds, insurance companies, and other institutions with a liquid way to access a diversified portfolio of aircraft assets managed by specialists.

• For Ultra-High-Net-Worth Clients: The alliance will strengthen the offering of Japanese Operating Lease (JOL) products through their joint venture, Daiwa Airborne. JOLs are a popular tax-advantaged investment structure in Japan, allowing wealthy individuals and corporations to gain exposure to aviation assets while benefiting from tax deferral. The partnership aims to enhance these products by incorporating warehousing functions to ensure a more stable and attractive deal flow.

By embedding itself more deeply with a specialist like Airborne Capital, Daiwa avoids the immense operational complexity of entering the aircraft leasing business directly, instead opting for a partnership model that combines its vast distribution network in Japan with Airborne's industry-specific knowledge and asset management capabilities.

A Cross-Border Blueprint for Growth

The alliance represents a powerful cross-border collaboration, linking Dublin's established hub of aviation finance with Tokyo's deep pools of capital. For Airborne Capital, the deal is more than just a capital injection; it is a strategic endorsement that provides unparalleled access to Japan's sophisticated investor base.

The final agreement for the share acquisition is scheduled for May 20, 2026, with payment for the subordinated notes expected in or after July 2026. While Daiwa has stated that the immediate financial impact on its consolidated results will be minor, the long-term strategic value is clear. The partnership is designed to enhance corporate value over the medium to long term by positioning both firms to capitalize on the enduring growth trends in global aviation. This move solidifies Daiwa's position as a forward-thinking financial institution catering to the evolving needs of its clients in a complex global market.