February 26, 2025
Vista Global, which owns VistaJet and XO, says it expects to close the definitive agreement for an equity investment by the end of March.
Vista Global has signed a definitive agreement for a $600 million equity investment from a consortium of investors led by RRJ Capital.
The company sells private jet flights via its VistaJet and XO brands.
The leading private jet flight provider made the announcement earlier this morning.
Per the release, “This investment marks another significant milestone in Vista’s historic growth journey and validates the confidence in the Group’s strategic vision and business model.”
It continues, “This investment will optimize the Group’s capital structure, enhance free cash flow generation and reduce indebtedness.”
The announcement adds, “This is in line with Vista’s strong commitment to accelerate deleveraging, diversify its investor base, and further strengthen its financial position.”
Vista Global Chairman and Founder Thomas Flohr says, “Today’s announcement is a strong endorsement of our strategy and long-term vision for the future while also providing us with great partners for years to come.”
He adds, “We are excited to welcome RRJ Capital and the rest of the consortium to join our existing carefully curated investor base, and look forward to working with Richard and the rest of the team to support Vista’s next phase of growth.”
RRJ Founder and CEO Richard Ong says, “RRJ is very pleased to become a long-term partner to Vista, the leading private jet company in the world.”
He adds, “With over 20 years of industry innovation and a global presence across all markets, this strategic investment in Vista marks an exciting new chapter in our shared journey.”
RRJ lists its “strategic focus” as healthcare, financial institutions, technology, and logistics.
RRJ and its affiliates “manage approximately US$16 billion of long-term capital.”
Andalusian Private Capital and others will participate alongside RRJ Capital.
The transaction is expected to close before the end of March 2025.
News of the potential investment was first reported by 9fin last November.
That report suggested the raise could be up to $1 billion.
Last month, Bloomberg reported the final number and a possible IPO.
Vista Global Founder and Chairman Thomas Flohr later denied a public offering.
He told a Dubai news radio program, “Right now, it’s not in the plan.”
Flohr was responding to a Financial Times story about its cash position.
Per the FT’s report on privately held Vista Global financials, Adjusted EBITDA and revenues for Q3 2024 were up 7%, $600 million, and $2.1 billion, respectively.
Flohr also spoke to CNBC.
He told the news outlet, “Year-end, we ended with close to $200 million worth of liquidity, which is December 31st.”
He added, “We’re not running the company on a quarterly basis. A privately owned company – important is our long-term strength of the company.”
The FT had also noted, “With available capacity on a $230 million revolving credit facility, Vista reported access to available funds of $105 million at the end of September.”
Flohr continued, “We had in 2024 some remaining acquisition payments to be made.”
The founder said, “If we want to draw more liquidity, we could. We don’t see the need just for a quarter end. The end-year numbers that I just told you about basically confirm my point.”
Flohr claimed, “The company is very healthy, has enough cash to run its business and is actually growing the cash now that all the acquisitions are behind us, so cash flow positive post-acquisition payments.”
In April, Bloomberg reported that he was open to selling part of his 84% stake in the company to raise equity.
In his most recent CNBC interview, Flohr said, ” I will always keep the majority of the company. Everything else is always a question of the quality of a potential partner.”
A recent report by Ch-Aviation pegged Vista’s fleet as the third-youngest among large commercial private jet operators, trailing only NetJets and Flexjet.
Flohr has attributed increased debt to buying new aircraft and operators as it tripled its fleet over the past seven years.
That includes a fleet of more than a dozen Bombardier Global 7500 ultra-long-range jets
Vista acquisitions have included operators XOJet, Red Wing Aero, Talon Air, Jet Edge, and Air Hamburg, plus brokers JetSmarter, Apollo Jets, and Camber.
VistaJet offers customers the most global primary service area of any flight provider.
XO offers instant-booking ad hoc charter flights, mainly in the U.S., and a dynamic pricing membership program.
READ: After XOJet: Vista Global outlines the Xs and Os of private jet charter platform XO
It’s also the latest big-money deal backing private jet operators.
Flexjet, Inc. raised $550 million in an unsecured bond offering in December.
Wheels Up secured $332 million in financing from Bank of America last year.
Kompass Kapital bought a controlling stake in Airshare for an undisclosed amount.
Separately, NetJets and its pilots agreed to a $1.6 billion increase in pay through 2029.
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