US private equity giant Carlyle is set to take control of Southend Airport after agreeing a deal to settle a debt with its current owner.

Esken, formerly Stobart Group, said it had decided to agree to the proposal designed to settle the airport’s £193.75million debt to Carlyle Global Infrastructure Fund (CGI).

The investor will take an 82.5 per cent stake in Southend Airport, while current owner Esken will keep 17.5 per cent.

Who is Carlyle?

The Carlyle Group is a private equity, alternative asset management and financial services corporation based in the US with $376 billion of assets - around £295.54 billion in pounds - under management.

Founded in the 1980s, Carlyle was the world's largest private equity firm by 2015 by capital raised over the previous five years. Its ranking slipped to fifth place in the 2023, according to the PEI 300 index, but the giant remains one of the largest mega-funds in the world.

John Upton, CEO of Southend Airport, previously said Carlyle has “extensive experience across the aviation industry and deep knowledge of our airport”.

The firm already operates a number of other global airports, including the new terminal one at JFK. It is among a consortium labour, operating and financial partners building the new terminal at the major international airport, which is the sixth busiest airport in the US.

It previously led a bid for Edinburgh Airport, which it withdrew from towards the end of 2012.

Why are they "taking control" of Southend Airport?

In 2021, as the pandemic continued to eat into passenger numbers, a £125million loan agreement was made to help fund the development of Southend Airport, with a maturity date of August 2028.

However, Carlyle later claimed the terms of its loan had been breached and asked for almost £200 million back. Esken denied there had been any payment defaults by Southend Airport.

This latest deal will settle that dispute.

Esken had already announced the possibility of a deal last month, saying it had until March 4 to mull it over.