Hangar portfolios carry biases that standard performance reporting does not correct. Appraisals are infrequent and smooth, which understates volatility and flatters risk-adjusted returns. Ground-lease amortization distorts the timing of value. And the information gap between a general partner and its limited partners is wider in a niche asset class with no public benchmark.
What we review
- Appraisal smoothing and stale pricing bias in reported marks.
- IRR construction, including subscription-line effects and cash-flow timing.
- Lease-term amortization and reversion treatment in the valuation policy.
- Carve-out complexity and leverage treatment in multi-asset aviation portfolios.
- Composite construction and disclosure measured against the GIPS standards.
Who we serve
Limited partners performing manager diligence, general partners preparing for an institutional raise, and pension funds evaluating an aviation infrastructure allocation. The methodology, including the AREPS protocol, is set out in our research on GIPS compliance frontiers for hangar portfolios.
Common questions
Is this a formal GIPS verification?
No. We provide independent performance review and GIPS advisory. A formal GIPS verification must be performed by a verifier engaged for that purpose, and we will tell you plainly when that is what you need.
Why does appraisal smoothing matter for a hangar fund?
Infrequent appraisals understate volatility and inflate risk-adjusted returns. In an asset class with no public benchmark, that bias can make a fund look better than the underlying assets performed.
Do you work for LPs or GPs?
Both, though never on the same matter. LPs retain us for manager diligence; GPs retain us to prepare reporting for institutional capital.
What is the AREPS protocol?
It is the adjustment framework we developed for aviation real-estate performance reporting, addressing smoothing, leverage, and carve-out treatment. It is described in our published research.
Discuss your engagement
Retained analysis for lenders, owners, investors, and litigation counsel across aeronautical valuation.
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