Sir Richard Branson’s latest deal with one of the world’s leading private equity groups is a testament to his ability to turn a profit. Virgin Cruises is his latest venture and with the help of Bain Capital voyages could be up and running by 2019. The investment is reportedly worth hundreds of millions of pounds and has sent a clear message that the recent space tourism disaster will not be holding Virgin back. In fact, just weeks after securing Bain Capital as a key investor Branson revealed that the construction of two flagship vessels is already underway.
According to Branson the inspiration behind Virgin Cruises is, “to see whether we can attract people like myself who’ve never been on a cruise ship.”
A colossal injection of cash
As well as financial support from Bain Capital the Virgin Group will be investing over £63 million of its own shares in the enterprise. Joining the pair will be a series of other investors including a Middle Eastern sovereign wealth fund as well as a number of private backers. When tallied up the total equity and debt package is estimated to be worth over as £1 billion.
While Branson will be overseeing the venture sources have confirmed that the Virgin Group has appointed US based advisory firm Allen & Co as official financers of Virgin Cruises.
Images sourced via Flickr Creative Commons. Credit: Frank Monks.