CONNECTICUT, United States — Private equity firm North Castle has raised $300 million for businesses that promote healthy and sustainable living, highlighting the attractive investment opportunities healthier lifestyles are creating.
In what is the sixth and final round for the company’s ‘NCP VI’ fund, Chip Baird, North Castle CEO and founder explained:
“We welcome our new investors to North Castle and are gratified to receive the support of our returning investors, who increased their commitments by approximately 25%.”
Leveraging nearly two decades of experience in the wellness sector, North Castle seeks to create partnerships with entrepreneurs looking to take their companies successfully through the next stage of their development.
Investing across a wide range of markets, the company has already used capital from the NCP VI fund to support leading equipment brand, JTL Enterprises Inc. and American-based, boutique fitness operator, SLT, which plans on using the cash injection to expand its presence across the United States.
“Our investments in HydroMassage and SLT are the most recent examples of how changing views toward healthier lifestyles are creating attractive businesses and investment opportunities,” commented Alison Minter, Managing Director.
“As the original private equity firm in the healthy living space, our focus has resulted in unparalleled market expertise, network and knowledge in the fitness, nutrition, consumer health and beauty & personal care industries, among others.”
Building on their experience in the fitness and fitness equipment industry, North Castle will partner with the management teams of both HydroMassage and SLT to grow the two companies and assist them in achieving their next level of success, explained Jon Canarick, Managing Director.
Founded in 1997, North Castle has made 28 investments in fitness and nutrition brands, including premium gym operator Equinox, fitness equipment manufacturer Octane Fitness, boutique fitness studio Barry’s Bootcamp and juice manufacturer, the Naked Juice Company.
The company’s focus on the wellness space began after the management team created a set of criteria that had to do with the size, growth rate, fragmentation, innovation and ownership of baby boomers, and the degree of interest by strategic buyers, Baird told Club Industry in a recent interview.
“We assessed the economy through that filter. Lo and behold, what came out was the space that back then we referred to as healthy living. Now we refer to it as healthy, active and sustainable living.”
Selling Equinox in 2006, Naked Juice in 2007, and Octane Fitness to Nautilus Inc. for $115 million in January of this year, Baird told Club Industry, the firm sees around 300 investment opportunities annually, with a typical year yielding maybe one or two investments, that have an average lifespan of approximately five years, before they are sold.
“The foundation of the North Castle approach is to partner with exceptional management teams and industry professionals to unlock the full potential performance of companies in the Healthy, Active and Sustainable Living sector,” explained Baird.
Off to a great start with its current investments in HydroMassage and SLT, the closure of North Castle’s latest funding round will allow the firm to continue hunting for attractive business opportunities and support innovation in the wellness industry.