Roark Capital Backs Orangetheory Fitness With Growth Equity Investment

Orangetheory Fitness is one step closer to fulfilling ambitious expansion plans after receiving growth equity investment in an undisclosed sum from an affiliate of Roark Capital Group, an Atlanta-based private equity firm that focuses on investing in the franchise industry.

The fast-growing fitness franchise, whose heart-rate-monitored workouts can be found across a number of countries including America, Australia, and the U.K, has announced it plans to use the new investment to open more than 300 studios by 2017 as part of an aggressive growth strategy that Roark will support.

“We decided to engage Roark as a strategic investor to support us as we continue to experience rapid growth in the U.S. and internationally, as well as expand our product and service quality,” said Dave Long, co-founder and CEO of Orangetheory Fitness. “Our relationship with Roark will strengthen our mission to deliver proven fitness results for a healthier world.”

Specifically looking for industry leading brands like Orangetheory, with attractive performance, talented management teams and growth opportunities, Steve Romaniello, MD at Roark Capital explained how Orangetheory’s explosive growth over the last five years impressed the firm.

Launched in Fort Lauderdale in the U.S in March 2010, Orangetheory Fitness has transformed into one of the world’s top fitness franchises, with more than 360 studios in 36 states and 7 countries, an accomplishment Roark Capital believes is due to the the founders and leadership team, who have built a strong brand that is generating amazing results.

“The corporate team, area representatives and franchisees are incredibly talented and strong, and we’re excited to help contribute to the brand’s success, ” Erik Morris, MD at Roark Capital said.

For now Ultimate Fitness Group LLC will remain as owner of the company with the affiliate of Roark Capital Group acting as a minority investor, according to an Orangetheory spokesperson. Additionally, the new partnership will enable Orangetheory Fitness to improve its systems and processes, while bringing its workout to millions across the globe.

In July 2015, Long told Club Industry that he projected to have 500 to 550 clubs open and operating by the end of 2016, before disclosing that the company had generated $8 million in revenue in 2014. A figure he projected to grow to upwards of $20 million in 2015.