UPDATE, 10/5/12, 5:10 p.m. EDT: Names of the Mayer Brown attorneys involved in this matter have been added to the article’s final paragraph.

Los Angeles–based private equity firm Oaktree Capital Management will sell aircraft leasing company JSA International Holdings to a subsidiary of Mitsubishi Corp. for $1.3 billion, JSA said Thursday.

Tokyo-based Mitsubishi UFJ Lease & Finance Company Ltd. will acquire JSA—which operates as Jackson Square Aviation—for a mix of cash and loans. Headquartered in San Francisco, JSA manages a fleet of 76 aircraft with a total value of more than $4 billion, leasing to major airlines around the world. The deal is expected to close by the end of the year, pending regulatory approval.

Mitsubishi UFJ said in its own announcement of the transaction that acquiring JSA would allow it to expand its leasing services into an aircraft market that is expected to see growth due to increased passenger volume. The company currently focuses on machinery and automobile leasing, as well as real estate financing.

The aircraft leasing industry has been busy this year. This deal comes just months after Japan’s Sumitomo Mitsui Banking Corp. agreed to pay $7.3 billion for the airplane leasing unit of the Royal Bank of Scotland, in January.

Davis Polk & Wardwell is advising Mitsubishi UFJ on the acquisition with a team that includes corporate partner Phillip Mills, executive compensation partner Kyoko Takahashi Lin, tax partner Kathleen Ferrell, and antitrust counsel Stephen Pepper. Partner Juliet Cain is advising on aircraft leasing and financing aspects of the deal, while partner John Reynolds III is providing foreign investment advice.

Kirkland & Ellis and Paul, Weiss, Rifkind, Wharton & Garrison are working for JSA and Oaktree on the sale. Los Angeles–based corporate partner Damon Fisher is leading Kirkland’s team. In 2010 Fisher advised Oaktree on the $500 million investment that launched JSA.

The Paul Weiss team includes corporate partners Neil Goldman and Kenneth Schneider, in New York, and Tokyo-based corporate partner Kaye Yoshino. In April the firm advised Oaktree on the $1.1 billion sale of Mobilitie Investments to SBA Communications.

Mayer Brown is providing aircraft regulatory advice to JSA and Oaktree. New York-based finance partners Robert Barnard and George Miller are leading the firm’s team.