Equinox is Raising Capital, Plans Renewed IPO Bid

Equinox

Equinox hopes to raise $300–500M in new capital ahead of going public.

After a SPAC merger failed to materialize last year, a cash injection could help the company find its footing before making another run at the public markets, according to a WSJ report.

Shaping Up

As gyms begin to rebound, Equinox is plotting its next move.

  • Equinox has 100 luxury health clubs globally and owns SoulCycle, Blink Fitness, and Equinox Hotels.
  • Accelerating its omnichannel strategy, including Equinox+ and the SoulCycle at-home bike, Equinox landed an investment from private equity firm Silver Lake in early 2020.
  • Last fall, the company secured $255M in new financing commitments from some of its lenders and owners to bolster its liquidity.

To date, its premium price point and urban locations have slowed recovery. According to S&P Global Ratings, Equinox ended the third quarter of 2021 with 232K members, down nearly 30% from year-end 2019.

Complicating matters, the company has been hit with a number of lawsuits for unpaid rent.

Across the Industry

Brick-and-mortar gyms are touting gains as at-home fitness brands stumble.

Last year, Xponential Fitness, F45 Training, and Life Time all IPO’d. More recently, these in-person fitness brands posted promising results when reporting quarterly and annual earnings.

On the flip side, Peloton, iFIT, and Beachbody have been forced to restructure amid slowing sales.

Looking ahead: With strong brand affinity and backing from Stephen Ross’s Related Companies as well as private equity firm L Catterton, Equinox is counting on a combination of new capital and the continued rally of gyms to cash in.

Breaking down the business of fitness and wellness

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