Catterton Expands Its Wellness Portfolio With $75m Investment In SoulCycle Rival

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Catterton, a leading US consumer-focused private equity firm, has expanded its wellness portfolio this week by investing $75 million in Peloton, an at-home fitness provider of live instructor-led spinning classes.

The investment will allow Peloton, which has now raised $120 million since launching in 2012 to continue to expand and innovate in the at-home fitness category.

We are thrilled to partner with Catterton and build on the passion consumers have expressed for Peloton’s incredibly immersive fitness experience and unique digital content,” said John Foley, Founder and CEO of Peloton.

Already very active in the fitness sector, Catterton’s portfolio includes two major studio operators; CorePower Yoga, which has 130 studios across the US, and Pure Barre, which has more than 300 studios across 42 states and is a clear market leader.

Catterton has also funded British-born activewear brand Sweaty Betty and Lily’s Kitchen, a natural pet food brand, a clear indication that it sees the commercial potential of the wellness sector.

“The American consumer is responding and attitudinal and behavioural analyses indicate consumers are becoming more selective in their product and lifestyle choices,” a report from Catterton’s website highlights. “Boomers are leading this shift, and unlike previous generations, they are determined to transform the act of aging into not getting old.”

And whilst Catterton acknowledges that this shift to healthier product choices began in affluent segments, it also adds: “Americans across all income group, demographic and age cohorts are seeking healthier lifestyles after seeing their parents and grandparents suffer from diabetes and other debilitating diseases.”

This latest investment into a technology-enabled fitness startup, enabling target segments like at-home mothers to engage in dynamic Soul Cycle-style workouts on a fixed bike, also demonstrates the private equity firms responsiveness to the growth in online fitness platforms.

And Peloton’s founder clearly had his eye on Catterton because of its knowledge of and expertise in the sector:

“Catterton’s outstanding track record of helping leading retail and consumer companies achieve their goals, as well as their deep understanding of the secular shifts taking place in the fitness space makes them an ideal partner for Peloton,” said Foley, who sees it as an exciting milestone in the company’s development.

It’s this high-growth potential in the specialty fitness space that makes Peloton a good fit for the consumer-focused private equity firm.

“Peloton enjoys a loyal and rapidly growing rider base and is ideally positioned at the convergence of multiple fitness trends in the gym, studio fitness and home cardio markets,” said Marc Magliacano, a Partner at Catterton, speaking about the investment.

Peloton, which has the potential to take some of SoulCycle’s share of the market, is changing the way people get fit and has plans, with its latest investment, to expand its engineering team, open more showrooms in the US and increase brand awareness.

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