One of the largest private credit investments ever made into a GCC-born, founder-led consumer brand.
GymNation, the GCC’s fastest-growing gym operator, has secured a $100 million private credit facility from certain funds, entities and/or accounts managed, advised or controlled by HPS Investment Partners, LLC (“HPS”), part of BlackRock- the world’s largest asset manager, in one of the first regional investments of its size since the Iran conflict commenced.
Founded in the UAE in 2018 by Loren Holland, Frank Afeaki, and Ant Martland, GymNation was built on a simple mission: to make world-class fitness affordable and accessible to everyone. Since opening its first gym in Al Quoz, Dubai, GymNation has grown to become the Middle East’s largest low-cost gym operator, with close to 50 locations and over 200,000 members across the UAE, Saudi Arabia, and Bahrain.
“Securing $100 million of growth capital is a transformational milestone for GymNation and provides the platform for us to expand our footprint across the GCC and beyond. What was most encouraging throughout the process was the conviction shown by HPS and all stakeholders involved, who despite the challenging geopolitical environment, never lost confidence in the business or the long-term prospects for the region. The GCC has created a world-class entrepreneurial environment which, as a UAE homegrown startup, we are proud to represent,” said Loren Holland, CEO & Founder, GymNation.
“The GCC represents one of the most exciting and highest growth fitness markets in the world right now, and we are proud to being playing our part as we continue to make fitness affordable and accessible to all. We also believe the GymNation brand and unique business model is transferable into other international markets, and we will soon be announcing our first expansion outside of the GCC, into Asia, which will represent an exciting new chapter of growth” he added.
This $100 million facility ($75m committed with a $25m accordion) is the latest and most significant chapter in a capital journey that has attracted increasingly sophisticated institutional investment at every stage. In 2023, the founding team led a management buyout, acquiring full control of the business with the support of Ruya Partners and Tricap Investments, two regional partners whose early conviction laid the foundation for what followed.
The transaction also marks a successful exit for existing financing partner Ruya Partners who played a pivotal role in supporting GymNation’s management buyout and expansion into Saudi Arabia. The refinancing by HPS reflects GymNation’s rapid growth and evolution into a scaled regional platform capable of attracting global institutional capital.
The investment will be deployed across three priority areas. First, continued expansion across the GCC, with a pipeline targeting 100+ locations in the next three years, building on GymNation’s established presence across the UAE, Saudi Arabia, and Bahrain and supported by a new regional headquarters in Riyadh. Second, further investment in GymNation’s proprietary technology platform, the data, AI, and machine learning infrastructure behind GymNation’s industry-leading unit economics. Third, international expansion beyond the GCC, as GymNation evaluates new markets where demand for affordable, high-quality fitness is strong and the category remains significantly underpenetrated.
More than 50 members of GymNation’s senior leadership team have been granted participation in the company’s long-term incentive equity plan, reinforcing alignment between management and shareholders as the business enters its next phase.
Tatsu Partners acted as lead debt advisors to GymNation on the transaction while DLA Piper served as legal advisors. PwC provided financial due diligence and tax advisory services.
Eight years on from a single gym in Al Quoz, GymNation has become one of the GCC’s defining entrepreneurial success stories. The transaction’s completion against a backdrop of heightened global volatility speaks to the strength of those fundamentals and the conviction of its institutional partners.
