General Atlantic makes majority investment in Plusgrade

Global growth investor General Atlantic has made a majority investment in Plusgrade, a provider of ancillary revenue solutions for the global travel industry, in a deal that sees Novacap fully exit its stake while another existing investor, CDPQ, remains a significant shareholder. 

Financial terms of the transaction were not disclosed.

According to a press release, General Atlantic’s investment will support Plusgrade’s continued growth including its acceleration of new business segments and go-to-market efforts, strategic M&A opportunities and key operational initiatives. The company acquired Points.com in 2022 and UpStay in 2023.

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In a statement, Tanzeen Syed, a Managing Director and Head of Consumer Internet and Technology at General Atlantic, said: “Ken and the Plusgrade team have worked diligently to scale the business and offer partners a differentiated portfolio of solutions. With ancillary revenues and loyalty programs standing as some of the most important drivers of growth in the travel industry today, we believe Plusgrade is strongly positioned to continue capturing the market.”

Ken Harris, Founder and CEO of Plusgrade, added: “Ancillary revenue has become a critical driver of financial robustness for travel companies in every sector, and as the global ancillary revenue powerhouse, Plusgrade plays a central role in helping our travel partners create, grow, and enable major new revenue opportunities. We believe we have significant opportunity ahead of us to continue innovating and building out our leading portfolio even further.”

Barclays served as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison served as legal advisor and Goodmans served as co-counsel to General Atlantic. JPMorgan served as lead financial advisor, Scotiabank served as financial advisor and Davies Ward Phillips & Vineberg served as legal advisor to Plusgrade.

Source: Private Equity Wire

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