Forum Markets (FRMM) Expands Aviation Portfolio with New Engine Acquisition

The Quick Take

• Forum Markets (FRMM) acquired an aviation engine to expand its aircraft asset portfolio
• The acquisition grows FRMM's exposure to engine leasing amid tight commercial spare engine supply
• Aviation engine values have appreciated as MRO backlogs drive demand for serviceable spare units

Forum Markets announced the acquisition of an aviation engine, extending its portfolio of aviation assets as the company continues to build scale in the aircraft engine leasing and trading segment. The move reflects growing institutional appetite for aviation-linked hard assets, particularly serviceable spare engines, which have become strategically valuable commodities as global airlines work through compressed MRO schedules and face delays in new aircraft deliveries from Boeing and Airbus.

Spare engine values have appreciated significantly over the past two years as demand for engine shop visits has outpaced MRO capacity, creating a market environment where owners of serviceable engines can command premium lease rates or attractive sale prices. Forum Markets' acquisition strategy aligns with this structural backdrop, positioning the company to benefit from tight supply conditions in the commercial engine market that are expected to persist through at least the mid-2020s given the order backlogs at CFM International, Pratt and Whitney, and GE Aerospace.

For equity investors, Forum Markets represents a pure-play vehicle for gaining exposure to aviation asset cycles without taking on the operating risk of an airline or the manufacturing cyclicality of an OEM. The engine acquisition strategy is capital-intensive but generates recurring income through lease agreements, and the residual value characteristics of high-demand engine types provide a degree of asset backing that differentiates the investment thesis from more asset-light aviation service businesses.

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