Virgin Voyages Receives $550 Million in New Funding
The capital will help the company’s strategic growth
Virgin Voyages, which launched in August 2021, recently secured $550 million in new capital raise to support the company’s growth. The lifestyle travel brand offering cruise vacations currently operates two cruise ships, the Scarlet Lady, which travels out of Miami to the Caribbean and the Valiant Lady, presently sailing in the Mediterranean.
The funding was managed by BlackRock and included new external financing and additional capital from existing investors, including Bain Capital Private Equity and Virgin Group, along with continued support from its existing lenders. The new funding will enable Virgin Voyages to continue executing its growth strategy and strengthen its financial position as cruise demand returns.
“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,” Ryan Cotton says, 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.”
Since launching last year, the brand has received Cruise Critic’s “Best New Cruise Ship,” recognition on Condé Nast Traveler’s 2022 Cruising “Hot List,” and was recently named one of the top ocean cruise lines in Travel + Leisure’s World’s Best Awards.
“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,” Tom McAlpin says, CEO of Virgin Voyages.
With COVID restrictions lessening recently, Virgin Voyages has seen exponential booking growth in the last six months. Research by Virgin Voyages revealed that 96% of consumers are eager to cruise in 2022.
“Despite the unprecedented challenges the cruise sector has faced in the past few years, the industry is exhibiting a powerful rebound. We are excited to invest in Virgin Voyages on behalf of our investors as we see a positive outlook and impressive growth on the horizon for the company,” Brendan Galloway says, Director in BlackRock Global Credit.