Investment Summary

Forstmann Little & Co. and McCown De Leeuw & Co. Exit 24 Hour Fitness

On March 30, 2014, private equity firm Bespoke Capital Partners, private equity firm Farol Asset Management, private equity firm Satori Capital, private equity firm AEA Investors and pension Ontario Teachers Pension Plan invested in consumer services company 24 Hour Fitness from Forstmann Little & Co. and McCown De Leeuw & Co.

Investment Highlights
  • This is Bespoke Capital Partners’ 1st, Farol Asset Management’s 1st, Satori Capital’s 1st, AEA Investors’ 2nd and Ontario Teachers Pension Plan’s 1st transaction in the Consumer Services sector.
  • This is Bespoke Capital Partners’ 1st, Farol Asset Management’s 3rd, Satori Capital’s 6th, AEA Investors’ 53rd and Ontario Teachers Pension Plan’s 33rd transaction in the United States.
  • This is Bespoke Capital Partners’ 1st, Farol Asset Management’s 2nd, Satori Capital’s 1st, AEA Investors’ 5th and Ontario Teachers Pension Plan’s 9th transaction in California.
Investment Fate
  • 24 Hour Fitness went bankrupt in 2020.

Investment Summary

Date 2014-03-30
Target 24 Hour Fitness
Sector Consumer Services
Investor(s) Bespoke Capital Partners
Farol Asset Management
Satori Capital
AEA Investors
Ontario Teachers Pension Plan
Sellers(s) Forstmann Little & Co.
McCown De Leeuw & Co.
Deal Type Secondary Buyout

Target

24 Hour Fitness

San Ramon, California, United States
24 Hour Fitness is a health club provider, involved in helping members change their lives and reach their individual fitness goals. 24 Hour Fitness offers fitness solutions for everyone including personal training services, group exercise classes and strength, cardio and functional training equipment.

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Investor(S) 5

DESCRIPTION

Bespoke Capital Partners is a private investment firm focused on opportunities in the consumer and leisure sectors. Bespoke typically pursues long-term investments (10 to 15 years) and generally seeks complex situations that can benefit from the Firm's sector expertise. The Firm looks to commit $25 to $250 million per transaction. Bespoke Capital Partners was formed in 2014 and is headquartered in Palm Beach, Florida.


DEAL STATS #
Overall 1 of 2
Sector: Consumer Services M&A 1 of 2
Type: Secondary Buyout M&A Deals 1 of 1
State: California M&A 1 of 1
Country: United States M&A 1 of 1
Year: 2014 M&A 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-04-01 World Gym

Taichung, Taiwan

World Gym is the owner and operator of the fitness center chain. World Gym has become the industry by offering affordable, monthly dues memberships in state-of-the-art, full service health clubs averaging 45,000 square feet in size. World Gym was founded in 2001 and is based in Taichung, Taiwan.

Buy -
DESCRIPTION

Farol Asset Management is a private equity firm that looks to match institutional investors with direct investment opportunities. The Firm seeks to commit $5 to $30 million per transaction to support a variety of transaction situations and typically works with opportunities brought to it by private equity firms, fund-less sponsors, entrepreneurs and operating executives. Farol Asset Management was formed in 2011 and is headquartered in New York City.


DEAL STATS #
Overall 4 of 23
Sector: Consumer Services M&A 1 of 1
Type: Secondary Buyout M&A Deals 1 of 4
State: California M&A 2 of 3
Country: United States M&A 3 of 21
Year: 2014 M&A 2 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-03-19 Delphon

Hayward, California, United States

Delphon is a provider of materials and services for the shipping, processing and packaging of high-value semiconductor, medical, photonics, telecommunications and military markets. The Company’s material scientists and R&D engineers work collaboratively with their customers to develop customized materials. Delphon was founded in 2004 and is headquartered in Hayward, California, and has additional manufacturing operations in Wilsonville, Oregon.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-10-01 Pulse Secure

San Jose, California, United States

Pulse Secure LLC provides easy, comprehensive software-driven Secure Access solutions for people, devices, things, and services that improve visibility, protection, and productivity for our customers. Pulse Secure LLC suites and SaaS platform uniquely integrate cloud, mobile, application, and network access to enable hybrid IT in a Zero Trust world. Over 24,000 enterprises and service providers across every vertical entrust Pulse Secure to empower their mobile workforce to securely access applications and information in the data center and cloud while ensuring business compliance.

Buy -
Investor

Satori Capital

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2008
PE ASSETS 1.3B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Satori Capital is a private investment firm that looks to partner with management teams to pursue profitable, growth-oriented companies with $5 to $50 million of EBITDA. The Firm does not have any sector preferences and generally looks for situations where there is an opportunity for accelerated growth. The Firm will consider majority or minority positions and prefers businesses operating in the US. Satori Capital was formed in 2008 and is based in Dallas, Texas.


DEAL STATS #
Overall 6 of 18
Sector: Consumer Services M&A 1 of 1
Type: Secondary Buyout M&A Deals 1 of 2
State: California M&A 1 of 2
Country: United States M&A 6 of 18
Year: 2014 M&A 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-12-09 Ranger Wireless Solutions

Dallas, Texas, United States

Ranger Wireless Solutions is a provider of wireless telecommunication solutions to cellular/wireless carriers and offers roaming service. Ranger Wireless Solutions was founded in 1998 and is based in Dallas, Texas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-10-21 Origami Owl

Chandler, Arizona, United States

Origami Owl LLC is an operator of custom jewelry companies with products like Living Lockets, personalized Charms, Bracelets and Earrings. Origami Owl was founded in 2010 and is based in Chandler, Arizona.

Buy -
Investor

AEA Investors

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1968
PE ASSETS 19.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

AEA Investors is a private investment firm focused on investing in and acquiring businesses headquartered primarily in the US, Europe, and China. AEA looks for companies operating in stable to growing industries with a proven ability to generate positive cash-flow. Broad sectors of interest include value-added industrial products/services, specialty chemicals, consumer products, and services. In addition to its primary middle-market private equity fund, AEA maintains additional funds targeted towards mezzanine financing, senior secured debt, and small business buyouts. AEA Investors was formed in 1968 and is based in New York City.


DEAL STATS #
Overall 62 of 121
Sector: Consumer Services M&A 2 of 6
Type: Secondary Buyout M&A Deals 24 of 57
State: California M&A 5 of 9
Country: United States M&A 53 of 106
Year: 2014 M&A 3 of 7
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-02-27 GMS

Tucker, Georgia, United States

GMS is an independent distributor of drywall, acoustical and other specialty building materials in the United States. GMS was founded in 1971 and is based in Tucker, Georgia.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-04-22 Pregis

Chicago, Illinois, United States

Pregis is a global provider of innovative protective packaging materials and systems. Pregis design, develop and deliver packaging solutions for a wide variety of consumer and industrial market segments. Pregis serves a wide variety of consumer and industrial market segments including food, pharmaceutical, healthcare, medical devices, agricultural, e-commerce, retail, automotive, transportation, furniture, electronics, building, construction, and military/aerospace. Pregis is based in Chicago, Illinois.

Sell -
Investor

Ontario Teachers Pension Plan

Toronto, Ontario, Canada

Investor Investor Investor Investor Investor


Category Pension
Founded 1990
PE ASSETS 116.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Teachers' Private Capital is the direct investment arm of the Ontario Teachers' Pension Plan. Teachers' Private Capital considers both private equity and venture related investments in North America, Europe, and Asia. Teachers' can support direct private equity investments between $100 million and $3 billion. Target sectors include business services, consumer products, retail, diversified industrials, financial services, technology, media, and communications. Teachers' Private Capital also makes private equity fund investments between $50 million and $750 million. Teachers' Private Capital was formed in 1991 and is based in Toronto, with additional offices in London and New York.


DEAL STATS #
Overall 67 of 176
Sector: Consumer Services M&A 1 of 8
Type: Secondary Buyout M&A Deals 22 of 56
State: California M&A 9 of 17
Country: United States M&A 33 of 74
Year: 2014 M&A 2 of 10
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-03-17 Grupo Corporativo ONO S.A.

Madrid, Spain

Grupo Corporativo ONO S.A. is a broadband service provider. It offers direct access telephony, pay television and internet access services to the residential market where, ONO offers advanced voice, data and value-added services across its own high capacity local access and national backbone networks.

Sell €7.2B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-04-28 Northern Star Generation

Houston, Texas, United States

Northern Star Generation is a power generation company. Northern Star Generation was founded in 2004 and is based in Houston, Texas.

Sell -

Seller(S) 2

SELLER

Forstmann Little & Co.

New York, New York, United States

Category Private Equity Firm
Founded 1978
Size Small
Type Sector Agnostic
DESCRIPTION

Forstmann Little & Co. is a private investment firm focused on investments in aerospace, consumer products/services, communications, technology, education, and healthcare companies. The Firm will consider investments in both public and private companies. Forstmann Little was most active in the 80s and 90s. Despite it's size and history, the Firm does not maintain a website. Forstmann Little was formed in 1978 and is based in New York City.


DEAL STATS #
Overall 10 of 10
Sector: Consumer Services M&A 1 of 1
Type: Secondary Buyout M&A Deals 2 of 2
State: California M&A 2 of 2
Country: United States M&A 10 of 10
Year: 2014 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-12-18 IMG

Beverly Hills, California, United States

IMG engages in sports, entertainment and fashion media, operating in more than 30 countries. IMG specializes in talent representation and management; brand marketing, sponsorship and licensing; media sales and distribution; event operation and management; and sports training and league development. IMG was founded in 1960 and is based in Beverly Hills, California.

Sell $2.3B
SELLER

McCown De Leeuw & Co.

Foster City, California, United States

Category Private Equity Firm
Founded 1984
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

McCown De Leeuw & Co. is a private equity firm focused on buying an building middle-market companies. The Firm is sector agnostic and will consider opportunities across the US. McCown De Leeuw & Co. was formed in 1984 and is based in Foster City, California.


DEAL STATS #
Overall 3 of 4
Sector: Consumer Services M&A 1 of 1
Type: Secondary Buyout M&A Deals 2 of 2
State: California M&A 2 of 2
Country: United States M&A 3 of 4
Year: 2014 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-05-03 24 Hour Fitness

San Ramon, California, United States

24 Hour Fitness is a health club provider, involved in helping members change their lives and reach their individual fitness goals. 24 Hour Fitness offers fitness solutions for everyone including personal training services, group exercise classes and strength, cardio and functional training equipment.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-12-21 The Company Store

Weehawke, New Jersey, United States

The Company Store LLC is an online retailer of textiles and home décor products, The Company Store has strong relationships and industry leading capabilities in the development and sourcing of high quality textiles across bedding, bath, and related categories. Founded in 1911, The Company Store has a rich history of providing products that are highly sought after by customers as they put the finishing touches on a room.

Sell -