Flexjet valued at $4 billion after securing funding from LVMH-backed private equity firm

By Pritam Biswas and Surbhi Misra

July 21 (Reuters) - Private jet flight provider Flexjet said on Monday it had raised $800 million in a funding round led by L Catterton, a private equity firm backed by LVMH LVMH.PA, valuing the company 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.

"The timing also steals some runway from the slowly re-opening IPO market, but avoids the headwinds of quarterly-earnings turbulence," said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors.

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 learned the hard way that SPACs can be like unpressurized cabins at 41,000 feet - exhilarating until the masks drop," Schulman said, adding that the Cleveland, Ohio-based company is now priced 30% higher than its aborted SPAC.

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.

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.

Jefferies, Morgan Stanley and Goldman Sachs acted as the co-advisers on the financing round.

Financial Times was the first to report on the funding round.