Credit funds and accounts managed by KKR agreed to provide a credit facility of up to $150 million to Jet Edge International, a provider of full-service private aviation that operates a fleet of managed Challenger and Gulfstream aircraft in the United States.
Jet Edge will use the funding to support the acceleration of its infrastructure and digital initiatives as well as its reserve membership. The financing comes as Jet Edge rolls out its AdvantEdge charter management platform across the U.S. The AdvantEdge platform aims to simplify and enhance the financial predictability for whole ownership of large cabin and super-midsize aircraft with a time-based model.
“Jet Edge is thrilled to partner with KKR as we continue to strengthen and grow our platform,” Bill Papariella, CEO of Jet Edge International, said. “As part of our continued focus on delivering innovative solutions to our clients, we are excited to officially unveil the Jet Edge AdvantEdge program — the first whole aircraft ownership solution that is a true alternative to both fractional ownership and the antiquated traditional aircraft management model. Never before has the plane ownership experience been as forecastable and predictable as it is with AdvantEdge.”
The AdvantEdge program will work with aircraft owners to schedule out predetermined, dedicated blocks of charter hours in three distinct tiers for each enrolled aircraft, with a goal of providing predictable revenues and schedules as well as improvements to utilization performance.
Jet Edge also will use the financing from KKR to support growth initiatives across its business, including developing technology to support clients, investing in marketing and talent and accelerating the progress of business lines, including its aircraft sales division, Jet Edge Partners.
“Jet Edge has built a reputation as a best-in-class, scaled operator in the private aviation market,” Dan Pietrzak, a partner at KKR, said. “This transaction continues our asset-based finance strategy of providing long-term funding to leaders in the global aviation sector so they can invest in their businesses and capture opportunities as the market recovers.”
“We have been impressed by Jet Edge’s strong operational capabilities and innovative approach to solving the pain points of private aircraft ownership and chartering,” Patrick Clancy, principal at KKR, said. “Bill and his team put their clients at the center of everything Jet Edge does and we are excited to invest in their continued success.”
