RedBird Capital takes more than 5% stake in Blade Air Mobility
Investment firm earlier picked up a smaller position in the short-flight provider
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The private-equity firm RedBird Capital Partners has amassed a more than 5% stake in the air-transportation provider Blade Air Mobility Inc., according to the investment firm’s founder.
RedBird, best known for its investments in media companies and pro sports teams including the Boston Red Sox and AC Milan, has built the stake since originally taking a 1% position in Blade in 2021, according to the firm’s founder and managing partner, Gerry Cardinale.
The firm participated in a private investment in public equity at that time, alongside Blade’s merger with a special-purpose acquisition company, or SPAC, sponsored by the travel - and leisure-focused firm KSL Capital Partners. Mr. Cardinale has been a personal investor in Blade since 2016. Blade currently has a market value of about $272 million, after a roughly 40% decline in its shares over the past year.
Blade provides short-distance passenger flights using helicopters and planes throughout the U.S., Canada, Europe and India, including to sports and live-entertainment events such as the Monaco Grand Prix and the Coachella Valley Music and Arts Festival in California.
Air to Air photography of blade helicopters flying around Manhattan NYC
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BLDE | BLADE AIR MOBILITY INC. | 3.30 | 0.00 | 0.00% |
It also has a large and fast-growing medical business that transports human organs for transplant and constitutes over 50% of revenue, according to Rob Wiesenthal, founder and chief executive. The company is the largest dedicated air transporter of human organs for transplant in the U.S., he said.
A Bell 407 helicopter operated by Blade Urban Air Mobility Inc. sits at John F. Kennedy Airport (JFK) in the Queens borough of New York, on Tuesday, May 7, 2019. Helicopters have been whisking the wealthy from Manhattan to New York's airports for dec
As a result of its crossing the 5% threshold, RedBird will have observer rights on the board of directors, including access to company information and the ability to collaborate with management.
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Mr. Wiesenthal said he believes combining air-mobility capabilities with entertainment and event opportunities in the RedBird portfolio will help boost Blade’s business. This combination includes the ability to provide short-distance air travel to large concerts and sporting events.
Passenger disembarking from a Blade Helicopter. Blade Air Mobility provides short-distance passenger flights throughout the U.S., Canada, Europe and India.
The investment is one of several aviation deals for RedBird, which has invested around $200 million across these businesses, according to Mr. Cardinale. Other investments include the private-jet business Jet Linx Aviation, the short-haul private-jet operator Verijet Inc. and the airport hangar and fueling operator Aero Centers.
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RedBird’s relationship with the jet operators will allow Blade to use aircraft for longer-distance medical-transportation missions, Mr. Wiesenthal said, further expanding the medical side of Blade’s business.
—Miriam Gottfried contributed to this article.