VistaJet Taps Rhone Capital For $150 Million Cash Investment

VistaJet focuses on global flying and, earlier this year waived ferry fees for program members.

By Doug Gollan, August 23, 2017

Rhône Capital has invested $150 million of cash into VistaJet, the company said today in an announcement. The release said with secondary acquisitions, Rhône will have a $200 million stake in VistaJet. The deal gives the operator of luxury private jets ”a post-money basis in excess of $2.5 billion,” according to the companies.

Commenting on the deal, VistaJet’s Founder and Chairman, Thomas Flohr said in written comments, “With the investment announced today, the equity valuation in excess of $2.5 billion, and our fully scalable technology-driven business model, VistaJet is ideally placed to take advantage of the opportunities to shape the market as it further develops in the years to come.”

VistaJet has its operations hub in Malta and main sales offices in London, Dubai, New York, Los Angeles, Hong Kong, Shanghai, and Beijing. It has built a fleet of over 70 wholly-owned super mid-sized and ultra-long range aircraft, all with identical livery and design.

Earlier this year VistaJet made news by eliminating ferry fees worldwide. It had previously had ferry fees for Australia and parts of Latin America. A significant focus of the company’s sales efforts is both supplemental lift for corporate flight departments and company’s that do not want to own their own private jets.

Private Jet Card Comparisons earlier this year reported the now current launch of VistaJet Direct, a new digital membership that gives customers priority access to available one-way and empty-leg flights via the company’s app and website. It is the first VistaJet program priced under $100,000.

As part of the investment statement, VistaJet added, “The positive effects of this work are visible in VistaJet’s trading performance. In the first half of 2017, VistaJet’s EBITDA rose by 32% year-on-year.  The company saw a 51% growth in the total number of Subscription Program Hours sold year-on-year in the second quarter of 2017, and Program Membership revenue reached a record high of 63% of total revenue, up from 55% in the previous quarter. It also recorded a customer retention rate of 91% in the first half of 2017. The company says it has flown 250,000 passengers to over 1,600 airports in 187 countries, or 96% of the world.

Rhône Capital and its affiliates comprise a global alternative investment management firm with approximately $5.5 billion in assets under management. The firm focuses its private equity investments on market-leading businesses with a pan-European or transatlantic presence and global growth opportunities. Rhône, which is currently investing capital from its fifth private equity fund, has invested in a diversified portfolio of companies, including those in the chemical, consumer product, food, packaging, specialty material, business services, and transportation sectors.

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