Flexjet valued at $4 billion after securing funding from LVMH-backed private equity firm
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, opens new tab 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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
31 minutes ago
- Reuters
Japan says $550 billion package in trade deal could finance Taiwanese chipmaker in US
TOKYO, July 26 (Reuters) - Japan's $550 billion investment package agreed in this week's U.S. tariff deal could help finance a Taiwanese firm building semiconductor plants in the U.S., Japan's top trade negotiator Ryosei Akazawa said on Saturday. Japan agreed to the sweeping U.S.-bound investment initiative, which includes equity, loans and guarantees, in exchange for lower tariffs on its exports to the U.S. However, the structure of the scheme remains unclear. "Japan, the United States, and like-minded countries are working together to build supply chains in sectors critical to economic security," Akazawa told public broadcaster NHK. To that end, he said projects eligible for financing under the package are not limited to U.S. or Japanese firms. "For example, if a Taiwanese chipmaker builds a plant in the U.S. and uses Japanese components or tailors its products to meet Japanese needs, that's fine too," he said, without specifying companies. The U.S. is significantly reliant on Taiwan's TSMC ( opens new tab for advanced chip manufacturing, raising economic security concerns due to geographic proximity to China. TSMC announced plans for a $100 billion U.S. investment with U.S. President Donald Trump at the White House in March, on top of $65 billion pledged for three plants in the state of Arizona, one of which is up and running. Japan will use state-owned Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI) for the investments. A recent law revision has enabled JBIC to finance foreign companies deemed critical to Japan's supply chains. Akazawa told NHK that equity investment would account for just about 1-2% of the $550 billion, suggesting that the bulk will come in the form of loans and guarantees. When asked about the White House statement that the U.S. would retain 90% of the profits from the package, he clarified that the figure refers only to returns on equity investment, which would represent a small fraction of the total. While Japan initially hoped to secure half of the returns, a loss from the concession on the profit-sharing would be marginal compared to the roughly 10 trillion yen ($67.72 billion) in tariff costs that could be avoided under the deal, he said. He added that Japan aims to deploy the $550 billion investments during Trump's current term. ($1 = 147.6600 yen)
The Guardian
31 minutes ago
- The Guardian
Doge reportedly using AI tool to create ‘delete list' of federal regulations
The 'department of government efficiency' (Doge) is using artificial intelligence to create a 'delete list' of federal regulations, according to a report, proposing to use the tool to cut 50% of regulations by the first anniversary of Donald Trump's second inauguration. The 'Doge AI Deregulation Decision Tool' will analyze 200,000 government regulations, according to internal documents obtained by the Washington Post, and select those which it deems to be no longer required by law. Doge, which was run by Elon Musk until May, claims that 100,000 of those regulations can then be eliminated, following some staff feedback. A PowerPoint presentation made public by the Post claims that the Department of Housing and Urban Development (HUD) used the AI tool to make 'decisions on 1,083 regulatory sections', while the Consumer Financial Protection Bureau used it to write '100% of deregulations'. The Post spoke to three HUD employees who told the newspaper AI had been 'recently used to review hundreds, if not more than 1,000, lines of regulations'. During his 2024 campaign, Donald Trump claimed that government regulations were 'driving up the cost of goods' and promised the 'most aggressive regulatory reduction' in history. He repeatedly criticized rules which aimed to tackle the climate crisis, and as president he ordered the heads of all government agencies to undertake a review of all regulations in coordination with Doge. Asked about the use of AI in deregulation by the Post, White House spokesperson Harrison Fields said 'all options are being explored' to achieve the president's deregulation promises. Fields said that 'no single plan has been approved or green-lit', and the work is 'in its early stages and is being conducted in a creative way in consultation with the White House'. Fields added: 'The Doge experts creating these plans are the best and brightest in the business and are embarking on a never-before-attempted transformation of government systems and operations to enhance efficiency and effectiveness.' Musk appointed a slew of inexperienced staffers to Doge, including Edward Coristine, a 19-year-old who was previously known by the online handle 'Big Balls'. Earlier this year, Reuters reported that Coristine was one of two Doge associates promoting the use of AI across the federal bureaucracy.
Daily Mail
31 minutes ago
- Daily Mail
US' largest wine producer announces round of layoffs and warns more to come
The US' largest wine producer is closing its California winery and laying off dozens of production workers. Gallo Winery, which produces popular brands such as Barefoot, Black Box, and Dark Horse, issued the grim notice earlier this month. Gallo is permanently shutting down its winery in San Luis Obispo County and will close the facility in December. Currently 47 production workers are preparing to hang up their hats at the winery on September 8, according to public WARN (Worker Adjustment and Retraining Notification) records. Employers are required to file WARN notices with the state to give workers 60 days' notice before layoffs, closures, and relocations. The layoffs are set to occur in two phases, with the first in September and additional layoffs in January, according to additional filings reviewed by the San Francisco Chronicle. Gallo will continue to operate their other wineries, which includes multiple locations across California, Washington, and New York. The brand is headquartered in Modesto, California, but employs about 7,000 people worldwide, according to the company's most recent fact sheet. It is unclear how this will impact Gallo's production output, but industry sources told the Santa Maria Times that the layoffs have been common knowledge. Daily Mail reached out to Gallo for comment and additional information on the winery's closure. The American Association of Wine Economics ranked Gallo as the largest supplier in the US in 2024 with a 32.6 percent market share. Gallo dominated the market last year. The Wine Group came in second for top suppliers, but only had 10.3 percent market share. Barefoot was the top selling table-wine brand in 2024, raking in over $555 million for Gallo, according to Statista. Last year, Wine Business Monthly ranked Gallo as the top selling producer, with case sales estimated at $100 million. The Wine Group came in second with $45 million, and every other producer failed to crack $20 million. Despite the company's dominance in the market, the wine industry has suffered in recent years. The writing on the wall began in 2020, when wine consumption began to decrease for the first time in 25 years, the San Francisco Chronicle reported at the time, citing industry data. US wine consumption fell in 2022 from 1.06 billion total wine gallons to only 986 million, according to data from the Wine Institute. The Silicon Valley Bank's recent data on the wine industry found that after three decades of growth, wine sales have flattened. The wine industry has struggled with decreases in demand as younger generations turn away from drinking or opt for canned beverages instead With younger generations drinking less and purchasing alternative alcoholic options like spiked seltzers, the demand for wine has decreased. 'The decline in the wine-friendly Boomer population and a change in the sentiment towards alcohol have led to the continued reduction in demand,' the Silicon Valley Bank concluded. The industry has had to downsize due to decreased demand. Gallo was forced to sell their facilities in Edna Valley and Templeton last year.
