West Palm Beach, FL – Comvest Credit Partners (“Comvest”) has acted as Administrative Agent and Sole Lender in providing a Senior Credit Facility (the “Financing”) to Aspyr Holdings LLC (“Aspyr” or the “Company”), an area representative and franchisee of 33 Orangetheory Fitness locations in San Diego, Orange County, Long Beach, San Francisco and East Bay regions of California. Proceeds of the Financing were used alongside an equity investment led by New Heights Capital and Tensile Capital Management for a minority recapitalization, purchase of 4 additional studios, retirement of existing debt, and growth initiatives.
“We are excited to partner with Aspyr to support the growth of the Company and the development of additional studios in its regions,” said Rich Steere, Managing Partner of New Heights Capital. “Marc Thomas and Pete Selner, co-CEOs of Aspyr, have done a fantastic job building their studios, teams and member base. Independently, they have already built one of the largest franchisee groups in the country and have distinguished themselves as performance leaders. With support from Comvest and our equity investment, we expect to accelerate Aspyr’s growth and footprint within the Orangetheory Fitness network.”
“Aspyr has a strong track record of attracting and retaining customers due to Orangetheory Fitness’ unique and results driven fitness solution. The Company’s high level of customer engagement and use of technology has produced exceptional performance and we are excited to partner with the Company as they continue to grow.” said Colleen Gurda, Managing Director at Comvest.
Piper Jaffray & Co. served as financial advisor to Aspyr Holdings with Integrity Square LLC advising New Heights Capital and Tensile Capital Management.
Orangetheory® makes it simple to get More Life from your workout. One of the worlds fastest-growing franchise companies, Orangetheory has developed a unique approach to fitness that blends a unique trifecta of science, coaching and technology that work together seamlessly to elevate participants’ heart rate to help burn more calories. Backed by the science of excess post-exercise oxygen consumptions (EPOC), Orangetheory workouts incorporate endurance, strength and power to generate the “Orange Effect” whereby participants keep burning calories for up to 36 hours after a 60-minute workout. Orangetheory franchisees have opened over 1,300 studios in all 50 U.S. states and over 23 countries. The company was ranked #60 in Inc. magazine’s Fastest Growing Private Companies list and was listed as #25 on the 2019 Entrepreneur Franchise 500 list. For more information please visit the website.
About New Heights Capital:
New Heights Capital is a private equity investment firm focused exclusively on equity investments in consumer service companies and the technology enabled service companies that service those consumer businesses. New Heights Capital sponsored and led the Aspyr Holdings recapitalization. For over a decade, the firm has been an active investor in the fitness industry, partnering with leading companies in the industry, including Orangetheory Fitness, Edge Fitness, and ABC Financial. The firm invests in buyouts, recapitalizations and growth investments in businesses between $5mm-100mm in revenues. For more information, please visit the website.
About Tensile Capital Management:
Tensile Capital Management is a San Francisco-based investment firm managing $1.5 billion in committed capital through an “evergreen” fund structure. Tensile seeks to generate superior risk-adjusted, after-tax returns through long-term investments in a concentrated portfolio of undervalued public securities and select private businesses. With respect to its private investments, Tensile’s ability to invest throughout the capital structure, flexibility in structuring minority investments and active and collaborative partnerships with management teams and boards of directors can provide unique solutions for business owners. For more information, please visit the website.
About Comvest Credit Partners:
Comvest Credit Partners, through affiliated private funds, focuses on providing flexible financing solutions to middle-market companies. We provide senior secured, unitranche, second lien, and mezzanine capital as well as equity co-investments. We lend to sponsored and non-sponsored companies, in support of refinancings, growth capital, acquisitions, buyouts, and recapitalizations. Credit facilities typically range from $25 million to $200 million for companies with revenues greater than $15 million. For more information, please visit the website.
About Comvest Partners:
Comvest Partners is a private investment firm providing equity and debt to middle-market companies across the U.S. Since its founding in 2000, Comvest has invested over $4.7 billion. Today, Comvest Partner’s funds have over $3.7 billion of assets under management. Through an extensive capital resources and broad network of industry relationships, Comvest Partners offers companies financial sponsorship, critical strategic and operational support, and business development assistance. For more information, please visit the website.