Intrinsic Aviation, founded by industry veteran Ed Washecka, has launched a joint venture with Arena Investors to invest in helicopter assets. The joint venture will lease, trade and part-out mid-life to end of life helicopters.

The joint venture’s first transactions involve three S76C++s owned by different lenders. One of the helicopters will continue on lease with an oil and gas operator. The other two will be parted-out immediately.

“The helicopter industry has suffered massive dislocation as a result of the prolonged oil and gas downturn, with asset prices falling dramatically for some aircraft types. In an oversupplied market, it sometimes makes more sense to scrap the helicopter and to sell the constituent parts as a means to recover any remaining value ,” said Ed Washecka, founder and CEO of Intrinsic Aviation. “In addition, we will support operators by trading and leasing helicopters.”

“With the current distress in the sector and uncertainty in markets worldwide, we see opportunities to deploy capital at attractive asset prices and to support an industry traditionally underserved by leasing and creative capital solutions,” says Vivek Nayar of Arena Investors. “We provide capital to nimble, entrepreneurial and aligned partners and are delighted to be working with Ed and Intrinsic Aviation in the helicopter market.”

RBC Capital Markets acted as financial adviser to Intrinsic with Akerman LLP acting as legal adviser. McGuireWoods LLP acted as legal adviser to Arena.