Apollo and KKR Strike $10 Billion Partnership for Atlantic Aviation

Under the terms of the agreement, Apollo-managed funds join KKR as joint controlling shareholders. KKR, which has overseen an aggressive expansion of Atlantic’s footprint over the past five years, will remain a substantial shareholder. Singaporean sovereign wealth fund GIC also joined the deal as a co-investor, further validating the appeal of essential aviation infrastructure to long-term institutional capital.

Strategic Rationale and Market Tailwinds

The deal reflects a broader trend among top-tier private equity firms to secure “irreplaceable” infrastructure. Atlantic Aviation operates one of North America’s largest FBO networks, with more than 105 locations providing mission-critical services including fueling, hangar leasing, and maintenance. These operations are typically protected by long-term airport concession agreements, creating predictable, inflation-protected revenue streams that are highly attractive in a volatile macroeconomic environment.

“Atlantic has built an irreplicable infrastructure footprint across the nation’s busiest airports,” said David Cohen, Partner at Apollo. “The private aviation market has structural tailwinds that we believe will persist, and Atlantic is well positioned to capture that growth.”

Rapid Valuation Growth: 2021–2026

Since KKR’s acquisition from Macquarie Infrastructure Corp. in 2021, Atlantic Aviation has significantly expanded through a combination of organic growth and strategic M&A. A key driver was the 2022 merger with Ross Aviation, which helped the company scale past the 100-location threshold.

Leadership and Forward Strategy

The company remains led by CEO Jeff Foland, who took the helm in August 2023 following the 30-year tenure of Lou Pepper. Under Foland’s leadership, Atlantic has leaned into sustainable aviation fuel (SAF) initiatives and technology-driven customer experiences, seeking to differentiate itself in an increasingly consolidated market.

The influx of Apollo’s capital is expected to accelerate:

• New Market Expansion: Targeted acquisitions of independent FBOs to fill geographical gaps.
• Sustainable Infrastructure: Development of electrified vertiports to support the anticipated rise of electric vertical takeoff and landing (eVTOL) aircraft.
• Operational Efficiency: Upgrading facility amenities and digital concierge services to cater to the ultra-high-net-worth (UHNW) segment.

Industry Implications: The “K-Shaped” Aviation Recovery

The $10 billion valuation highlights the widening gap between commercial aviation, which faces ongoing labor and supply chain constraints, and private aviation, which has seen demand stabilize at levels significantly higher than pre-2020 averages. Analysts point to this as evidence of a “K-shaped” economy, where the spending power of corporate executives and the ultra-wealthy continues to drive private equity exit strategies in aviation infrastructure.

The deal also parallels other major sector moves, such as the $4.7 billion take-private of Signature Aviation by Blackstone, GIP, and Cascade Investment in 2021. With the two largest players now backed by the world’s most aggressive alternative asset managers, the FBO sector is firmly entrenched as a core institutional infrastructure play.

Kirkland & Ellis served as legal advisor to KKR, while Paul, Weiss, Rifkind, Wharton & Garrison LLP represented the Apollo Funds. Financial advisory services were provided by Evercore and Morgan Stanley for Apollo, and Morgan Stanley for KKR.