Private jet operator, Flexjet, raised US$800 million in a new funding round led by L Catterton, a private equity firm backed by LVMH.
The investment is set to be used to fuel the company’s international operations and grow its fleet.
“The timing also steals some runway from the slowly re-opening IPO market, but avoids the headwinds of quarterly-earnings turbulence,” Chief Investment Officer at Running Point Capital Advisors, Michael Ashley Schulman, said, as reported by Reuters.
The new funding has led Flexjet to be worth around $4 billion, a substantial jump from the US$3.1 billion figure tied to the company’s planned SPAC merger in 2022, which ultimately collapsed the following year.
“Flexjet learned the hard way that SPACs can be like unpressurised cabins at 41,000 feet – exhilarating until the masks drop,” Schulman said.
Flexjet’s expansion strategy is underscored by a $7 billion deal with Brazilian aircraft manufacturer Embraer, which includes the purchase of 182 Phenom and Praetor executive jets with options for an additional 30 aircraft.
JPMorgan analysts expect the deal to increase Embraer’s total backlog by about 26% to $28.7 billion.
