
L Catterton invests China fitness club operator
L Catterton Asia has invested an undisclosed amount in Will’s Group, a China-based operator of fitness facilities and services, to support its domestic expansion plans.
Will’s Group was founded in Shanghai in 1996 and operates more than 130 fitness clubs in 12 cities in China. Members have access to general fitness spaces, swimming pools, and spa facilities, with training programs including group classes, personal training, and nutrition planning. Currently the company has nearly 400,000 members.
L Catterton’s investment is intended to accelerate the growth of Will’s Group in China, with a focus on expanding the company’s fitness offerings in major and secondary cities and growing its leadership team. Will’s Group will also seek synergies with L Catterton’s other portfolio companies and leverage its relationship with luxury goods giant LVMH to bring high-end fitness lifestyle products to China.
“The fitness industry is experiencing rapid growth in China. When Will's Group was founded in 1996, only three marathon races were held across the country – last year, five million runners participated in over 1,100 marathons,” said Ravi Thakran, chairman and managing partner of L Catterton Asia, in a statement. “With this phenomenal increase in sport and health activities, we see tremendous upside in China's fitness industry.”
Premium fitness services are an increasingly popular investment destination for Asia’s private equity players. Previous activity in China’s fitness space includes last year’s investment in Hong Kong-based fitness center and yoga studio operator The Pure Group by FountainVest Partners and Ontario Teachers’ Pension Plan (OTPP).
PE investors have also been active in Southeast Asia: Navis Capital Partners and Oaktree Capital Management created Evolution Wellness last year by merging two Asian fitness businesses, while Fitness and Lifestyle Group, an Australian gym platform owned by Quadrant Private Equity, is expanding into the region.
L Catterton’s fitness activity includes an $85 million Series D round alongside Temasek Holdings in US-based gym services company ClassPass, supporting a global expansion effort that will focus on Southeast Asia. The firm backs consumer lifestyle businesses that can benefit from growing discretionary consumption in Asian markets and is currently investing its third fund, which is targeting a final close of around $1.5 billion by the end of the year.
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