Branson races to find Virgin Atlantic investor in rescue attempt

Virgin Atlantic is racing to find new investors within the next month in a process that could reduce the 51% stake held by billionaire founder Richard Branson. The airline last week hired investment bank Houlihan Lokey to look at private funding options after the UK government rejected its initial submission for GBP500m of state aid, unimpressed by its failure to first seek investment elsewhere.  Houlihan has now approached more than 100 potential investors, with “all options on the table”, according to one person familiar with the matter. This could include loans, equity or more complex financial structures, and could cut Sir Richard’s majority stake.  But Virgin Group said it was not trying to sell the airline outright: “Richard and the Virgin Group are committed to the airline and are not looking to sell Virgin Atlantic. They recognise that further investment will be necessary to make up for the total loss of revenue due to Covid-19 and are working with Houlihan Lokey to approach private investors about the investment opportunity.”  Private equity groups, sovereign wealth funds and hedge funds were among those Houlihan had approached, according to another person close to the process.  About 50 have asked for more information and will be sent more detail on Virgin Atlantic’s business plan. These investors will now have another week to express further interest.<br/>