Virgin Voyages has raised $550m in new capital to support its continued growth strategy in a fundraiser led by investment management giant BlackRock.
The cruise ship owner said the funding consists of new external financing, with capital raised from investors that included Bain Capital and Richard Branson’s Virgin Group.
The package also included support from existing lenders, the company said.
“We have created an incredible product that both our investors and consumers truly believe in, and this additional capital comes at a time when we’re looking forward to exponential growth that will in turn help us achieve what we set out to accomplish,” chief executive Tom McAlpin said in a statement.
Virgin Group founded Virgin Voyages in 2014 to bring an adult-only cruise offering into the market as a complement to numerous subsidiaries, including the airline Virgin Atlantic.
Virgin Voyages, a joint venture between the Virgin Group and Bain Capital, launched the 2,800-berth Scarlet Lady in early 2020 just days before Covid-19 shut down the entire cruise sector. The ship was the first of four identical vessels ordered at Italian shipbuilder Fincantieri.
The ship did not sail on its first commercial voyage until August 2021, however, as a result of the pandemic. It currently takes trips from the US to the Caribbean.
Virgin Voyages received delivery of the second vessel, Valiant Lady, on July 2021, but that ship went into lay-up until entering service in March this year. It sails the Mediterranean Sea.
The shipowner delayed the launch of the third ship, Resilient Lady, by 10 months to June 2023.
The fourth ship on order at Fincantieri that is due for delivery in October 2023.
“Virgin Voyages has successfully launched a new brand in the cruise industry and proven its appeal to both the traditional and non-traditional cruiser, allowing the brand to tap into new markets and re-imagine this travel category,” said Ryan Cotton, a managing director at Bain Capital.
“The expansion and enthusiastic commitment of the investor group supporting Virgin Voyages is a testament to the attractive fundamentals of this brand and what makes it so special.”
