Virgin used Allen & Co. to raise equity for Virgin Cruises, “the very bank introduced into the project by Mr. Veitch in late 2010, even before he approached Virgin,” according to his complaint. Allen & Co. Chief Financial Officer Kim Weiland didn’t respond to a phone request for comment.
Virgin Group, the investment arm of Branson’s family, announced plans in December to create the new cruise line with backing from Bain Capital Partners. The companies didn’t disclose how much they were investing in the venture.
The line will be competing for passengers in an industry dominated by a handful of players, including Carnival Corp. and Royal Caribbean Cruises Ltd., the two biggest operators. While about 22 million people cruise annually, the industry says it still reaches a small share of its potential customer base.
Branson, known for his publicity stunts and stylish airline amenities, is expected to inject some more fun into the cruise business, travel agents said at the time of the announcement.
“We plan to shake up the cruise industry and deliver a holiday that customers will absolutely love,” Branson said when the new venture was announced. “They’ll be sailing on the latest ships offering a great quality, a real sense of fun and many exciting activities all delivered with the famed Virgin service.”