XOJET, the world's fastest-growing private aviation company, today announced the close of $143 million in equity and debt financing from TPG and Lehman Brothers GPS, and an additional $220 million in aircraft lease financing from Lehman Brothers GPS. Advised by Morgan Stanley, this investment will allow XOJET to meet expanding customer demand for its innovative private jet ownership, leasing and on-demand solutions. XOJET will leverage the additional capital to grow its operations and expand its fleet to serve its rapidly expanding customer base. XOJET funding raised to date now totals $542 million.
As part of the investment, XOJET said that David Bonderman, founding partner, TPG; David Siegel, chairman and CEO, Gate Gourmet; and William E. McGlashan, Jr., partner and managing director, TPG Growth, will join the XOJET board of directors, bringing proven experience in growing enterprises across multiple industries.
"We are pleased to align with investment partners with such strong track records in aviation. TPG brings unique strength and experience to our company," said Paul Touw, president and CEO of XOJET. "Although customer demand for private jet travel has never been higher, there has been no significant innovation in this industry since fractional ownership was introduced more than 20 years ago. XOJET has completely changed this dynamic, and this financing positions us to continue our aggressive growth."
Today's financing news is the latest in a series of announcements made by XOJET at the National Business Aviation Association (NBAA) convention this week. Earlier the company announced the acquisition of 30 Cessna Citation X jets and 80 Bombardier Challenger 300 jets with a combined market value of $2.5 billion. These orders will increase XOJET's fleet to 127 super-midsize jets by 2012. With an unmatched value proposition for frequent private jet travelers, XOJET has raised more than $322 million in debt and equity financing, more than doubled revenues each year since inception, and obtained a yearly employee growth rate of over 160 percent, becoming the world's fastest-growing private aviation company.
"Global demand for private jet travel continues to grow more than three times the rate of the broader economy," said Mr. Bonderman. "After studying this substantial $33 billion global industry, TPG concluded that XOJET's model is well positioned to take advantage of growth opportunities by delivering top quality service cost-effectively."
TPG is a leading global private investment firm with more than $30 billion of capital under management. The firm has been active in the commercial airline industry for more than a decade, with investments in Continental, America West and Ryanair. Most recently, TPG announced a major investment in Midwest Air Group. The XOJET investment marks TPG's first investment in private aviation.
"In a market where business travelers are increasingly switching from commercial aviation to private aviation, XOJET brings a game-changing approach to the table that puts the customer first while increasing efficiency, lowering costs and generating profits," commented Mr. McGlashan. "At a time when fractional growth has stagnated and commercial carriers are focused on cost-cutting, XOJET has rapidly distinguished itself as the most dependable, simple and cost-effective way to fly privately."
XOJET is the first company to provide a complete range of private jet ownership, leasing and on-demand travel solutions built especially for the most frequent business jet fliers. The company's strategy is to combine the service, access and exclusivity of owning a jet with the efficiencies and operational rigor of successful commercial airlines. XOJET's customers include more than 500 executives, leading corporations and influential individuals for whom flying private is essential.
XOJET's business model is differentiated by key strategies including:
Combining guaranteed availability and on-demand service to quadruple the industry averages for aircraft utilization, delivering dramatic cost efficiencies to customers;A modern pilot culture where every XOJET pilot is empowered to provide exceptional customer service and where career progression is based on accomplishment, skills, and safety.Investing in airline-grade scale and safety processes to significantly improve reliability, performance and customer service;Standardizing on a single, popular aircraft class, a practice common to several successful commercial airlines.About XOJET
XOJET is the first companytoprovide private jet ownership, leasing and on-demand travel solutions built especially for frequent business jet fliers. The company's strategy is to combine the service, access and exclusivity of owning a jet with the efficiencies and operational rigor of successful commercial airlines. Founded in 2001, XOJET officially launched its service in January 2006 and has quickly established itself as the fastest-growing private aviation company on record. Among its customers, XOJET is known for brand new jets, unmatched economics, stringent safety practices, exceptional service and a 99.5 percent on-time departure rate.
Most recently, XOJET has been recognized with a number of honors including being named a Robb Report "Best of Private Aviation" winner, an Inc. Magazine "Fastest Growing Company" and one of the best places to work in the Bay Area. For more information, visitwww.xojet.com.
About TPG Growth
TPG Growth is the venture, growth and mid-cap buyout investment platform of TPG, the global private investment firm. With more than $2.5 billion under management, TPG Growth targets investments in technology, life science, biotechnology, renewables, and consumer companies utilizing venture capital, growth equity, public equity and leveraged buyout structures. The firm is backed by the resources of TPG with more than $30 billion of assets under management and with successful travel investments that include America West, Continental, Hotwire and Sabre. TPG Growth has offices in the US, China and India. Please visitwww.tpg.com.
