Sankaty Jet Capital, a subsidiary of AIP Capital, has closed a $68 million secured mezzanine facility with Wheels Up Experience Inc. (NYSE: UP), according to a company statement.

The facility will support Wheels Up's fleet modernization program, specifically the acquisition of Phenom 300 and Challenger 300 Series aircraft. The financing is initially secured by 51 existing aircraft with an appraised value of approximately $277.8 million and is structured to accommodate additional aircraft purchases over the next 18 months.

"We are proud to commence our partnership with Wheels Up by providing a bespoke financing solution to support their fleet modernization program," said Ford von Weise, Chief Executive Officer at Sankaty.

George Mattson, Chief Executive Officer at Wheels Up, stated that the financing "provides the investment capital needed to execute our growth plan but reflects confidence in the progress we're making towards building a strong and sustainable business."

Wheels Up operates as a provider of on-demand private aviation services and maintains a strategic partnership with Delta Air Lines. The company offers charter and membership programs through its fleet and network of charter operators.

AIP Capital manages approximately $7.5 billion in assets and focuses on asset-based finance including aviation and equipment finance. The firm operates offices in Stamford, New York City, Dublin, and Singapore with more than 60 professionals.