KKR doubles Atlantic Aviation value with $2B facility bet
What's the deal? Private equity firm KKR has sold US fixed-base operator (FBO) Atlantic AviationDealroom has a profile for this one. Try Dealroom → at a valuation of roughly $10 billion — more than double the roughly $4.5 billion it paid in 2021. KKR remains a major co-controlling shareholder after the sale.
What's an FBO? Fixed-base operators are private aviation terminals where charter jets and private aircraft refuel and undergo maintenance. Private aircraft cannot use standard commercial airports, making FBO networks critical infrastructure.
How did KKR double the value? The firm invested nearly $2 billion — almost half the acquisition price — into facility expansion and system upgrades over roughly four years. It grew Atlantic's network from 67 to 108 locations, targeting sites near financial centres, affluent areas, and event hubs such as Las Vegas, Palm Beach, and Sun Valley, Idaho.
Why now? KKR bought Atlantic near a pandemic low point, when private aviation demand was uncertain. It then bet that wealthy travellers would keep choosing private jets over commercial airlines.
What changed operationally? KKR overhauled disconnected back-office systems, centralised fuel procurement to cut unit costs, and built a proprietary operating system that tracks each aircraft — from reservation to invoice — via its tail number. At Teterboro Airport near Manhattan, it demolished old hangars and built new ones to lift revenue per square foot.
The key hire: In 2023, KKR appointed Jeff Poland, a former United AirlinesDealroom has a profile for this one. Try Dealroom → and HertzDealroom has a profile for this one. Try Dealroom → executive, as chief executive officer to run the integrated network.
The comparison: Similar plays exist elsewhere. In 2019, IMM PEDealroom has a profile for this one. Try Dealroom → bought Linde KoreaDealroom has a profile for this one. Try Dealroom →'s general industrial gas division for US$1.17B, renamed it AirFirstDealroom has a profile for this one. Try Dealroom →, and tripled its enterprise value through technology investment and long-term contracts.
The signal: The deal challenges the view that private equity avoids heavy capital spending. KKR's Atlantic playbook shows how large infrastructure investment — not just financial engineering — can drive value creation in specialised assets.
Read more: gate.com
Image credit: Jed.Record
