Jet Edge gains KKR $40 million preferred equity investment

By Doug Gollan, September 9, 2021

KKR’s investment comes as Jet Edge reports jet card sales have surpassed $100 million

After providing $150 million in credit financing in June KKR has agreed to invest $40 million in preferred equity in Jet Edge International.

KKR is making the investment in Jet Edge through its credit funds and accounts focused on asset-based finance opportunities.

Jet Edge is ranked 8th on our list of the biggest North American private jet operators. The ranking is based on charter and fractional flight hours through June as provided by Argus.

Jet Edge Reserve

The new investment will support the growth of the Reserve jet card membership program and fleet expansion. Sor far, the company has also recorded over $100 million in membership deposits over the past year. By December, Jet Edge will be flying the 27 preowned aircraft it has been buying and refurbishing. That will bring its AdvantEdge fleet to 74 aircraft and 110 overall.

According to the announcement, the operator will also continue to make advancements in its technology and infrastructure. Included are an optimized scheduling system and artificial intelligence-based programs to maximize fleet efficiency. Also coming is a dynamic mobile application.

“We are pleased to invest in the growth of Jet Edge as a premier scaled private aviation operator with a leading membership program and world-class super-mid and large-cabin fleet,” said Dan Pietrzak, Partner at KKR. “At a time when the private aviation industry is experiencing historically high demand, the Jet Edge team continues to impress us with its innovative solutions to age-old inefficiencies and strong operational execution.”

“We are excited to expand our financing commitment with a preferred equity investment in Jet Edge and look forward to supporting their continued success,” said Patrick Clancy, Principal at KKR.

KKR ‘Confidence’

“We’ve successfully executed numerous growth initiatives driven by KKR’s initial financing and are excited to continue to build our platform with this new investment,” said Bill Papariella, CEO of the operator. “This financing speaks to KKR’s continued confidence in our business plan to deliver scaled private aviation solutions.”

Reserve members have access to gain bonus flight and catering credits. VIP perks come via global partnerships with Montage International, Discovery Land Company, and Four Seasons Hawaii Collection.

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