Third Space raises £88.5m debt package to support the brand’s continued growth

Arrowpoint Advisory’s Debt Advisory team has advised Marlin Bidco Limited ("Third Space"), a leading luxury health and fitness brand operating in London, in relation to the £88.5m financing to support its growth plans. 

OakNorth, the neobank for entrepreneurs, by entrepreneurs, has partnered with Searchlight Capital Partners, a private equity and debt fund operating across North America and Europe, to provide the financing.

Launched in 2001 and currently operating a portfolio of nine clubs in iconic locations across London, Third Space has cemented itself as one of the pillars of the city’s vibrant health and fitness scene. KSL Capital Partners – a leading investment firm focused on travel & leisure – acquired a majority stake in July 2021 from Encore Capital, who remains involved as a minority shareholder in the business. With the additional capital from OakNorth and Searchlight Capital Partners, Third Space plans to significantly expand its footprint and continue growing its team to provide outstanding fitness spaces for an expanded member base in London.

Colin Waggett, CEO of Third Space, commented: “We are seeing exceptionally strong demand for Third Space memberships, with most of our clubs operating with waiting lists. Our business sits at the heart of Londoners’ desire for health and fitness, authentic experiences and luxury service, and Third Space is uniquely positioned to meet these demands. We are pleased to have support from both OakNorth and Searchlight, and we look forward to opening more clubs in residential locations to complement our excellent central London sites and enhance member value, as we know that members like to use a club close to home and work.”

Neil Smith, Managing Director at Arrowpoint Advisory, highlighted: “We are delighted to have advised London’s leading luxury fitness brand on an important milestone, raising a financing package which ensures the company can continue its exciting growth plans across London. We wish Colin and team all the best for the future.”

Randal Pringle, Director at Arrowpoint Advisory, highlighted: “It was a pleasure working with the Third Space team on this milestone transaction for the market-leading health and fitness brand. We are delighted to have supported the company in raising a highly commercial and flexible financing package which will ensure Third Space can continue to execute on its exciting roll-out plans across London.”

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