Core Insights - The investment landscape for 2026 is perceived as offering deeper and wider opportunities despite high market valuations and indices [2] - Current equity markets are characterized by greed and impatience, leading to a focus on short-term performance rather than long-term value [3] - Investor psychology is shifting towards perceived risk aversion, which may actually be driving them away from areas with genuine mispricing [4] Performance and Net Asset Value - Dynasty Trust reported a quarterly return of -2.29% and a net asset value per unit of $1.3030 as of December 31, 2025 [5] - Over the rolling 12 months, the return was 8.19%, and over two years, it was 12.93% [5] - The inception return of Dynasty Trust stands at 36.74% [5] Market Dynamics - The S&P 500 index saw a significant concentration of performance in its top 10 stocks, which now account for 39.2% of the index [6] - Smaller companies and controlled entities have recently fallen out of favor, impacting the performance of Dynasty Trust [6] Currency Impact - The Australian dollar's fluctuations against the euro and US dollar affected returns, with a 5.5% decline against the euro and a 6% rise against the US dollar in 2025 [7] - The overall impact of currency changes on performance was minimal, costing only 11 basis points [7] Positive Contributors to Performance - Seven securities contributed positively to Dynasty Trust, with Sportradar (SRAD) showing a 68% gain and Catapult International a 54% gain [8] - Other notable contributors included Viel et Cie (48% gain) and Avolta (30% gain) [8] Negative Contributors to Performance - Six securities detracted from returns, with Novo Nordisk (NVO) down 28% due to drug pricing uncertainties [9] - Other significant detractors included Bolloré (19% decline) and EuroEyes International (24% decline) [9] Investment Strategy - The company emphasizes investing in controlled public companies, which historically have shown long-term benefits [11] - The focus is on avoiding dilution of investment skills by steering clear of extraneous factors like stock or currency hedging [11] Market Trends - The technology sector has seen a significant rerating, while other sectors have experienced derating from already pessimistic valuations [13] - A bifurcation in the market is evident, with technology stocks performing well while other sectors lag behind [17] Valuation Insights - Many European holding companies are trading at significant discounts to NAV, with an average discount increasing from 30% to 30.6% over three years [14] - The high pricing of privately held technology companies has widened discounts for European firms, leading to investor skepticism [19] Specific Company Analysis: Hansa Investment Company - Hansa trades at a 44% discount to NAV, with a pro-forma cash exposure of approximately 35% of NAV [32] - The company has initiated share repurchases post-merger with Ocean Wilson, which is expected to enhance NAV [38] Specific Company Analysis: D'leteren - D'leteren is facing challenges due to increased leverage and cyclical pressures, impacting reported profits [41] - The company has initiated a €100 million stock buyback program to manage its capital structure [44] - The valuation of D'leteren's stake in Belron is under scrutiny, with significant skepticism regarding private equity valuations [60]

Core Viewpoint - Willis Lease Finance Corporation (WLFC) and Blackstone Credit & Insurance (BX) have formed a strategic partnership focused on aircraft engine leasing, planning to invest over $1 billion in the next two years in both current and next-generation aircraft engines and select aircraft [1] Group 1: Partnership Details - The partnership combines WLFC's expertise in aircraft engine leasing with Blackstone's extensive private credit capabilities, specifically targeting the engine asset class [1] - WLFC is recognized as a pioneer in aircraft engine leasing and is expanding its asset management platform [1] Group 2: Investment Strategy - WLFC has identified a seed portfolio and a near-term pipeline of high-quality engine assets that are expected to be integrated into the partnership, which will provide immediate scale and diversification across various engine types and airline customers globally [1]

Core Insights - The establishment of Willis Aviation Capital (WAC) aims to manage third-party assets and capital, generating recurring management fees and supporting balance sheet deleveraging for Willis Lease Finance Corporation (WLFC) [1][3] Group 1: Company Overview - WLFC is a leading lessor of commercial aircraft engines and provides global aviation services, including leasing large and regional spare commercial aircraft engines and auxiliary power units [5] - The company integrates its leasing activities with end-of-life solutions for engines and aviation materials through Willis Aeronautical Services, Inc. [5] Group 2: New Division and Partnerships - WAC will manage engine and aviation asset portfolios primarily funded by third-party capital, including partnerships with Blackstone Credit & Insurance ($1 billion) and Liberty Mutual Investments (up to $600 million) [3] - WAC will also oversee existing joint ventures with Mitsui & Co. and China Aviation Supplies Company, as well as select third-party aviation assets [3] Group 3: Leadership and Structure - Brian R. Hole has been appointed as Global Head of Managed Funds and Credit for WAC, bringing extensive experience from his previous roles at WLFC [4] - Dan Coulcher has been named Senior Vice President of Joint Ventures, reporting to Mr. Hole [4] Group 4: Strategic Goals - The WAC structure is designed to enhance WLFC's return profile and leverage the company's industry-leading leasing and services platform to attract partners [2][5] - The initiative aims to create durable income streams and recurring revenue from institutional funds and joint ventures, driving shareholder value [7]

Core Viewpoint - Willis Lease Finance Corporation (WLFC) and Blackstone Credit & Insurance (BXCI) have formed a strategic partnership to invest over $1 billion in aircraft engines and select aircraft over the next two years, leveraging WLFC's expertise in aircraft engine leasing and BXCI's capital resources [1][2][3] Group 1: Partnership Details - The partnership aims to deploy over $1 billion in current and next-generation aircraft engines and select aircraft [1] - WLFC has identified a seed portfolio and a near-term pipeline of high-quality engine assets, which will provide immediate scale and diversification across engine types and airline customers globally [2] - BXCI's investment is expected to accelerate the growth of WLFC's asset management business, demonstrating confidence in WLFC's ability to generate attractive returns through disciplined asset selection and active management [3] Group 2: Company Profiles - WLFC is a leading lessor of commercial aircraft engines, providing leasing services to airlines, engine manufacturers, and maintenance providers worldwide, along with various end-of-life solutions for engines [5] - BXCI is a prominent credit investor managing over $100 billion, focusing on providing investment-grade credit, non-investment grade credit, and structured investments across various sectors, including infrastructure and commercial finance [4][6]

Group 1 - Apollo Global Management, Inc. is exploring a potential sale of its aviation company, Atlas Air Worldwide Holdings Inc., with a valuation target of over $12 billion, including debt [1][2] - The aircraft leasing sector has seen increased consolidation, highlighted by a $7.4 billion sale of Air Lease Corp. in September [2] - In 2022, Apollo Global Management acquired Atlas Air for approximately $5.2 billion, which also included debt [3] Group 2 - Apollo Global Management has a long-standing investment presence in France, with around €14 billion invested in French companies over more than two decades [3] - The company specializes in various investment sectors, including credit, private equity, infrastructure, secondaries, and real estate markets [4]

Core Viewpoint - China Aircraft Leasing Group Holdings announced that its subsidiary CALC (BVI) has reached an agreement to purchase 30 A320neo aircraft from Airbus [1] Company Summary - The acquisition involves 30 units of the A320neo model, which is known for its fuel efficiency and advanced technology [1] Industry Summary - The deal reflects ongoing demand for modern aircraft in the aviation sector, particularly for fuel-efficient models like the A320neo [1]

Core Viewpoint - Willis Lease Finance Corporation has successfully completed an offering of $337.4 million in Series A Fixed Rate Notes and $55.5 million in Series B Fixed Rate Notes, secured by a portfolio of aircraft engines and airframes [1][2]. Group 1: Financial Details - The Series A Notes have a fixed coupon of 5.159% and the Series B Notes have a fixed coupon of 5.696% [2]. - The expected maturity for both Series A and Series B Notes is approximately six years, with a final maturity of 25 years [2]. - The Series A Notes were issued at a price of 99.99937% of par, while the Series B Notes were issued at 99.99686% of par [2]. Group 2: Company Overview - Willis Lease Finance Corporation specializes in leasing commercial aircraft engines and provides various aviation services, including engine maintenance and asset management [5]. - The company operates through its subsidiaries, offering services such as aircraft disassembly, parking, storage, and ground handling [5]. - Willis Sustainable Fuels aims to develop projects to decarbonize aviation [5].

Core Insights - Air Lease has delivered its first Airbus A321-200neo XLR aircraft to Qanot Sharq, marking a significant milestone for both the lessor and the airline [1][2] - This delivery is part of a long-term lease agreement, with a total of four A321XLR aircraft planned for Qanot Sharq [1][2] Company Overview - Air Lease is a prominent global aircraft leasing company based in Los Angeles, specializing in purchasing new commercial aircraft and leasing them to airlines worldwide [4] - The company emphasizes customized leasing and financing solutions to meet the needs of its airline customers [4] Airline Profile - Qanot Sharq is Uzbekistan's first privately owned airline, operating from multiple regional airports and providing both regular and charter services to various international destinations [5] - The airline's network includes routes to cities in the MENA region, APAC region, and Europe, enhancing its operational footprint [5]

Investment Partnership Announcement - Willis Lease Finance Corporation (WLFC) has closed an investment partnership with Liberty Mutual Investments (LMI) to invest up to $600 million to support WLFC's credit strategy [1] - The partnership is backed by a warehouse debt facility from Bank of America N.A. and will focus on loan and loan-like engine financings, a sector WLFC pioneered in 2021 [1] Strategic Goals and Expertise - WLFC aims to accelerate the growth of its asset management business through this partnership, leveraging LMI's long-term capital and sector expertise [2] - LMI's investment emphasizes its capability to provide comprehensive financing solutions and support strong business growth in aviation finance [3] Company Overview - WLFC specializes in leasing commercial aircraft engines and related services, including maintenance and end-of-life solutions for aviation materials [4] - The company also aims to develop projects to decarbonize aviation through its Willis Sustainable Fuels initiative [4] Liberty Mutual Investments Overview - LMI is the investment arm of Liberty Mutual Group, managing over $117 billion in long-term capital globally, focusing on building enduring businesses and driving economic growth [5]

Executive Appointments - TrueNoord has announced three new executive appointments to enhance its team in Europe and Singapore, including Brendan Dempsey as finance manager, Michelle Kilcoyne as risk analyst, and the return of Marlous Helderman as HR manager [1][4] - Brendan Dempsey brings over ten years of experience in the aircraft leasing industry, having previously worked at KPMG, AMCK Aviation, and AIP Capital, with expertise in financial reporting and tax advisory [2][3] - Marlous Helderman has a background in HR consultancy and organizational development, focusing on aligning HR practices with legal frameworks to enhance people, culture, and performance [3] Company Growth and Talent Acquisition - TrueNoord's CEO, Anne-Bart Tieleman, emphasized the company's pride in attracting top talent from the industry, highlighting the exceptional team they have built [4][5] - The new executives are expected to contribute significantly to TrueNoord's growth during this exciting period for the company [3][5]