(Reuters) -Flexjet said on Monday it had raised $800 million in a funding round led by L Catterton, a private equity firm backed by LVMH, valuing the U.S. jet operator at $4 billion just a couple of years after a botched deal with Todd Boehly’s SPAC.
The funding comes as more companies remain private, seeking greater control over decision-making, less regulatory scrutiny, and access to abundant private capital.
Affiliates of KSL Capital Partners, LLC, and the J. Safra Group also participated in the round.
The valuation is an increase from the intended $3.1 billion, at which Flexjet was set to go public through Todd Boehly’s blank-check firm Horizon Acquisition Corp. II in late 2022.
That deal collapsed the following year.
Flexjet is looking to expand its fleet, with a focus on larger aircraft and international flights, following a $7 billion deal with Embraer for 182 Phenom and Praetor executive jets, with options for 30 more.
JPMorgan analysts expect the deal to increase Embraer’s total backlog by about 26% to $28.7 billion, forecasting deliveries over the next five years, as Flexjet plans to double its fleet during the period.
“L Catterton provides the perfect opportunity for collaborating in areas such as consumer insights, brand strategies, retail expansion, and luxury product delivery,” Flexjet’s Chairman Kenn Ricci said.
Founded 30 years ago, Flexjet provides fractional aircraft ownership, leasing, and jet card services in the private aviation sector. The company is now owned by Directional Aviation, a private equity investment firm.
Financial Times was the first to report on the funding round.
(Reporting by Surbhi Misra and Pritam Biswas in Bengaluru; Editing by Rashmi Aich and Tasim Zahid)
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