LVMH-backed L Catterton takes 20% Flexjet stake
A Flexjet Gulfstream G450 aircraft is approaching San Diego International Airport for a landing in San Diego 2025 in San Diego, California.
Kevin Carter | Getty Images News | Getty Images
An investment group leading LVMHs The private capital branch buys 20% of the private jet company Flexjet and points to the last pushing of the luxury industry for the expansion of travel.
The private capital company supported the French luxury giant LVMH and makes a $ 800 million investment in Flexjet, including brand partnerships and cooperation. The investment group also includes the affiliated institutions of KSL Capital Partners and J Safra Group. Flexjet will continue to be controlled by the main company -oriented aviation capital.
The agreement emphasizes the rapid expansion of the luxury industry to the experience economy as wealthy consumers increase their expenditures on travel, food and special events. In 2018, LVMH acquired the hospitality group Belmond for $ 3.2 billion and built Cheval Blanc and Bulgari Hotel and Resort Brands.
According to a report of Bain and Altagamma, global luxury goods sales decreased to Gene Z and the demand from Chinese consumers fell by 2% last year. However, luxury hospitality increased by 4%, gourmet foods and fine food increased by 8%and sales of yachts and special jets grew by 13%.
The agreement for Cleveland -based Flexjet creates a relationship with more than 75 greedy brand portfolio from the world’s largest luxury giant and Louis Vuitton and Dior to Dom Perignon and Tiffany.
Flexjet aims to be like a special membership club that provides luxury experiences and ordering services when the private jet industry becomes more competitive and the dominance of industry leader Netjets. Flexjet already has partnership with Belmond, Yacht Maker Ferretti Group and Bentley Motors, cooperating with jet interiors and curatoric activities.
“We are trying to move Flexjet to an experienced role,” said Kenn Ricci, President of Flexjet and director of the Flexjet. “If you think about a luxury trip and where you are today, I continue to think about a Flexjet community. When you have an experience in a hotel, you take it for a week and you learn what this experience is. But when you fly with a jet, it is four hours, five hours. So how do we create the Flexjet community?”
Ricci said that most of the revenues of the agreement would go to expand and improve Flexjet’s infrastructure. This includes buying larger, long -range planes to meet the rapidly increasing international travel demand. The company will also create its infrastructure abroad with additional maintenance facilities and location transport. And Flexjet will continue to add and train the flight crew through the private cabin official Academy. Approximately 25% of revenues will be used to pay a special dividend for shareholders.
Ricci said Flexjet reflected FAVÖK about $ 425 million this year, which was more than $ 398 million in 2024 and more than twice the levels of 2020. The company offers fractional property and rental options and jet cards. According to the company, 318 aircraft fleet is expected to reach 340 at the end of 2025, and there are more than 2,000 Flexjet members within the scope of the Kesirli and Rental Program.
Ricci said L Catterton approached Flexjet with a potential agreement while trying to stay in front of the luxury definitions of the Private Capital Company.
“(L Catterton) gave us some ideas about where they saw the future of luxury.” He said. “Basically they see that the luxury of the future is time. And they see that you can compensate for time on special travels.”
Ricci said that the details of potential brand partnerships or collaborations have not yet been announced. However, he referred to as Flexjet’s partnership with Belmond, which is special opportunities and advanced accommodation in the company’s luxury hotels in Ravello in Venice and Italy; And Mallorca, Spain and other places.
After the rooms designed separately in the best hotels, the company’s ordered flight cabins will continue to be a competitive advantage, he said.
“When we face a state like Netjets, we don’t have to be the biggest,” he said. “We want to be a boutique.”
L Catterton 40% belongs to LVMH and CEO Bernard Arnault Family Office. Among the consumer brands, he manages 37 billion dollars of equity capital. BirkenstockThorne and Etro.
L Catterton’s global CEO Scott Dahnke, Flexjet’s history “, in unique and exciting markets to fulfill the desires of consumers in the best way has never been in search of thoughtful innovation,” he said.
