Equinox Lands $1.8B, Plots Expansion


Brick-and-mortar is building back.

The news: High-end gym chain Equinox added $1.8B in new capital to refinance maturing loans and set the stage for expansion.

Sixth Street and Silver Lake led the transaction, with additional investments from Ares Management, HPS Investment Partners, L Catterton, and principals of the Related Companies (Equinox’s parent).

The company also secured a new revolving credit facility from Goldman Sachs, Morgan Stanley, and JP Morgan.

Ups and downs. A luxury brand promoting high-performance living, Equinox Group operates 107 clubs globally, as well as Equinox Hotels, SoulCycle, and Blink Fitness.

Gaining steam pre-pandemic, recent years have been a rollercoaster.

  • 2019: Equinox had ~350K members and upwards of $1B in revenue.
  • 2020: As gyms shuttered, losses topped $350M on $650M in revenue.
  • 2021: An exploratory SPAC merger valued the chain at $7.5B.

By 2022, CEO Harvey Spevak said the chain had rebounded, with membership sales reaching an all-time high. Continuing its upward momentum, revenues grew 27% in 2023.

Expansion mode. Now, armed with fresh capital, Equinox is building 25 new clubs while exploring domestic and international growth opportunities. Beyond physical locations, its digital offering, loyalty program, and holistic health services represent untapped potential.

Punchline: Leveraging its premium positioning, Equinox is banking on its brand to entice would-be members in new markets. Pushing the limits of luxury, it will pull out all the stops to sell people on high performance. But, it still has to deliver on its upscale sales pitch.

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