Affinity has been the main sponsor in the financing round of the Series F of 225 million dollars (207 million euros) from EGYM, the executive director of this smart fitness solutions company has declared in an interview with Boomberg News magazine. , Philipp Roesch-Schlanderer. The EGYM executive added that “this investment will help us prepare for an initial public offering (IPO).”
It should be remembered that Jared Kushner established the Miami-based private equity firm Affinity Partners in 2021, with employees of the political office of his father-in-law, Donald Trump, and well-known Wall Street investors. Affinity Partners has raised more than $3 billion in investment since January 2022.
Affinity Partners partner, Asad Naqvi, has stated that “it is rare to find companies with revenues in the triple-digit millions that are close to doubling in size year on year”. As Naqvi added, “by supporting EGYM, we have decided to support an incredible team, with a long track record and significant success, and we look forward to supporting the company on its path towards an IPO”
RESEARCH, DEVELOPMENT AND EXPANSION
EGYM, which has declared revenues of 130 million dollars in 2022, which has led to a 70% year-on-year increase, will use the funds obtained for research and development, as well as to boost its penetration in more gyms and increase corporate subscriptions to its network of associated sports and wellness facilities.
The executive director of EGYM, Roesch-Schlanderer, has stated that “our idea is that we need healthier and more productive employees and we want to promote savings in health care costs through preventive measures.”
“OUR CUSTOMERS ARE THE GYMS”
The executive director of EGYM has announced that the company will continue to focus on offering services to gyms and that it has no intention of addressing home fitness as other companies such as Tonal Systems Inc. or Peloton Interactive Inc. do, of which he has recalled that “ They are companies whose profitability has declined after a one-off boom related to the pandemic.”
Roesch-Schlanderer added that “we have twenty years of hard work and careful dedication to gyms ahead of us, so there is no need to think about home fitness.”
It should be noted that the investors that EGYM has historically had, that is, Mayfair Equity Partners and Bayern Kapital, have also participated in this latest round of financing.