Buffett-backed NetJets forms China JV with local PE players
NetJets, a private aviation company owned by Warren Buffett’s Berkshire Hathaway, will form a China joint venture with local private equity players Hony Capital and Fung Investments. It is seen as a move to tap the growing demand for private jet management services for both corporate and personal use.
Hony is participating via its wholly owned subsidiary Hony Jinsi Investment Management (Beijing). Fung Investments is a private investment arm controlled by the families of Victor Fung and William Fung, best known for running Hong Kong-based global trading group Li & Fung.
The joint venture, which awaits regulatory approval, will have is operational base in Zhuhai, in the center of the Pearl River Delta. According to an official statement, a memorandum of understanding was signed last year with the Zhuhai Aviation Industry Park last year at a ceremony attended by Vice Premier Li Keqiang.
"Our aim is to introduce NetJets brand of unmatched standards for managing private aircraft and provide aircraft owners in China with the ultimate in safety, security and reliability," Jordan Hansell, the company's chairman and CEO, said.
Eric Wong, vice chairman of NetJets China, added the joint venture will serve the increasing appetite for private jet services among both domestic customers and established customers in the US and Europe.
NetJets' expansion in Asia comes after the announcement in January of a partnership with Germany's Deutsche Lufthansa for private-jet services to 3,000 North American airports.
Hony has more than $6.8 billion in assets under management. Earlier this year, it closed its fifth US dollar-denominated fund at $2.4 billion and collected a total of RMB10 billion ($1.6 billion) for its second renminbi-denominated fund.
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