(TAN): Airbnb has raised USD 1 billion from private equity firms Silver Lake and Sixth Street Partners at a time when the travel and hospitality sector has been hit hard by the pandemic.
Silver Lake is an American private equity firm based in California’s Menlo Park while Sixth Street is a United States-based global multi-asset class investment business.
The investment, a mix of debt and equity securities, will be used to support the San Francisco-based home-sharing company’s long-term work, which includes attracting more hosts or homeowners who share their properties and experiences on Airbnb.
“The desire to explore, connect, have new experiences, and have a comfortable place to call home are universal and enduring. And our commitment to create a greater sense of belonging—for everyone, everywhere—will never change,” Airbnb Co-Founder, Chief Executive Officer and Head of Community Brian Chesky said.
“First off, I want to thank Silver Lake and Sixth Street for their incredible partnership and support. They have a well-earned track record for being insightful thought partners who always have a strong sense of where the world is going,” he added.
Silver Lake Co-Chief Executive Officer and Managing Partner Egon Durban said Airbnb’s robust model will enable strong business once the crisis is over.
“While the current environment is clearly a difficult one for the hospitality industry, the desire to travel and have authentic experiences is fundamental and enduring. Airbnb’s diverse, global, and resilient business model is particularly well suited to prosper as the world inevitably recovers and we all get back out to experience it,” Durban said.
Sixth Street Partners Chief Executive Officer and Managing Partner Alan Waxman said Airbnb is a worldwide community developed on trust.
“Airbnb created an enormous new category, underpinned by the leading brand and technology platform, as well as a community founded on trust. The company’s achievements speak for themselves, and we are excited by the opportunities on the horizon as they continue to grow their geographic footprint, accommodations and experiences. We’re pleased to partner with this unique company as they navigate through this period focused on hosts, guests, employees, communities, and shareholders,” he said.
Airbnb said USD 5 million from the investment will be contributed to the startup’s Superhost Relief Fund, to help hosts in need of financial help with USD 15 million grants.
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