Gymnation secures $100 million private credit facility
HPS Investment Partners shows confidence in GCC
There are plans for 100+ sites over the next three years
Further international expansion is on the cards, including Asia
GCC gym operator, Gymnation, has secured a $100 million private credit facility from HPS Investment Partners – part of BlackRock, the world’s largest asset manager.
This is one of the first regional investments of its size since the Iran conflict commenced and one of the largest private credit investments ever made into a GCC-born, founder-led consumer brand. It reflects the company's rapid growth and evolution into a scaled regional platform.
Founded in the UAE in 2018 by Loren Holland, Frank Afeaki, and Ant Martland, Gymnation set out to make world-class fitness affordable and accessible to everyone. In 2023, the founding team led a management buyout, acquiring full control of the business with the support of regional investors, Ruya Partners and Tricap Investments.
It is now the Middle East’s largest low-cost gym operator, with close to 50 locations and more than 200,000 members across the UAE, Saudi Arabia, and Bahrain.
Holland says this funding is a milestone: “It 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 represents one of the most exciting and highest growth fitness markets in the world right now, and we are proud to be 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.”
The investment will be deployed across three priority areas – continued expansion across the GCC, with a pipeline targeting 100+ locations in the next three years, supported by a new regional headquarters in Riyadh.
There will be further investment in Gymnation's proprietary technology platform – the data, AI, and machine learning infrastructure behind Gymnation's unit economics.
It will allow 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.
The transaction marks a successful exit for existing financing partner, Ruya Partners.
