LVMH-backed equity firm L Catterton and a group of investors have closed a deal with Flexjet, which gives it a 20% stake in the private jet company. The move comes as Flexjet seeks to become more specialized in its luxury service offerings, as per an official press release on Monday.
Money was raised through a funding round of $800 million from L Catterton, along with participation from affiliates of KSL Capital Partners, LLC, and the J. Safra Group. The deal gives Flexjet a valuation of $4 billion, up from an initial valuation of $3.1 billion in late 2022, as per a Reuters report.
“Flexjet epitomizes our category-first approach and, although they are celebrating their 30th anniversary this year, their history is one of never settling in pursuit of thoughtful innovation to best fulfill the desires of the consumers within their unique and exciting marketplace,” said L Catterton’s CEO, Scott Dahnke.
Flexjet is a private aviation company that was created in 1995. The firm manages a fleet that includes the Embraer Phenom 300, Praetor 500 and 600, the Gulfstream G450 and G650.
“L Catterton, with its special relationship with LVMH and its family of brands, provides the perfect opportunity for collaborating in areas such as consumer insights, brand strategies, retail expansion, and luxury product delivery,” said Flexjet’s Chairman Ken Ricci.
Since its founding in 1989, L. Catterton has made more than 275 investments in multiple brands mainly focused on the consumer sector according to its official website.
Initially known as Catterton-Simon Partners and then Catterton Partners, the company rebranded to L Catterton after a deal was struck in 2016, in which LVMH, Groupe Arnault, and the private equity firm combined operations across Latin America, North America, Europe, and Asia. As a result of the deal, LVMH and Groupe Arnault own 40% of L Catterton.