Not content to rest on their laurels, Wheels Up, the private charter flight service who in 2013 ordered 105 King Air 350i, announced this week it has completed it’s first closing on a capital raise of up to $115 million. Sources of the capital included funds and trusts managed by T. Rowe Price Associates, Inc., Fidelity Management and Research Company, and NEA. This round of investment has raised Wheel’s Up valuation to over $500 million.
The company plans to use the financing to further its United States expansion and secure a base of operations in Europe. They also plan to make additional improvements to their unique member-to member ride-sharing feature found on the company’s app.
Wheels Up Founder and CEO Kenny Dichter voiced the company’s vision and praised it’s partnerships during the announcement:
“Wheels Up is a disruptive force and is democratizing the private aviation space with its unique membership model, which broadens the addressable market, and its partnership with Textron Aviation to exclusively offer the Beechcraft King Air 350i, one of the world’s most iconic airplanes, in fleet format,” Mr. Dichter said. “We are excited to have T. Rowe Price as lead investor. We share a common vision on the ability of Wheels Up to become a market-leading company. We are also honored to have world-class institutions Fidelity Management and Research Company and NEA on board.”
Henry Ellenbogen, portfolio manager at T. Rowe Price expressed similar enthusiasm:
“We believe Wheels Up has the rare combination of experienced entrepreneurs, business model innovation, and a strong financial model. Wheels Up has developed network density and provides real customer value. It has the potential to be a much larger company,” said Henry Ellenbogen, portfolio manager at T. Rowe Price.
Wheels Up’s 2013 order of 105 King Air 350i ($1.4 billion) was the largest order in the history of general aviation turboprop aircraft. Wheel’s Up received its 35th King Air from this order in late August in Wichita. It features a special pink color scheme in support of Breast Cancer Awareness month (October).