Target Information

Eagle Merchant Partners (referred to as "Eagle" or "the Firm") has made a significant investment from its recently closed Fund II, by partnering with Aligned Fitness, a well-established franchisee of Club Pilates located in the Southeastern United States. Founded in 2016, Aligned Fitness is spearheaded by CEO Jon Smith along with co-founders Joe and Kerry Ruggieri, who will maintain their leadership roles to drive the company’s vision. With this investment, Eagle aims to catalyze growth through the development of new studios and strategic acquisitions in the Southeastern and Mid-Atlantic regions.

In conjunction with its initial investment, Eagle has successfully completed two add-on acquisitions: Crescent Concepts, LLC, which operates Club Pilates studios in South Carolina and North Carolina, and Next Twenty, LLC, which manages studios in Georgia. Following these transactions, the combined entity will operate a total of 34 studios across North Carolina, Georgia, and South Carolina.

Industry Overview

The boutique fitness industry is a rapidly expanding sector, now valued at approximately $24 billion, and it continues to grow at an impressive rate of over 12% annually. This growth is largely driven by a post-COVID consumer trend towards personalized fitness solutions, where individuals seek more tailored and engaging exercise experiences. As part of this shift, fitness modalities like Pilates have gained popularity due to their low-impact approach and restorative health benefits.

Pilates, in particular, offers several long-term advantages including core strength, flexibility, and mental well-being. The blend of physical and mental health focus aligns perfectly with contemporary wellness trends, making it an attractive investment opportunity. Furthermore, with the increased demand for low-impact exercise options, the market for Pilates services is expected to continue flourishing, attracting both new members and potential franchisees.

In the Southeastern United States, where Aligned Fitness and its franchises operate, the fitness landscape is becoming increasingly competitive. This region benefits from a vibrant health-conscious demographic, which is driving demand for innovative fitness solutions. The success of brands like Club Pilates illustrates the potential for growth and stability in this market.

Moreover, the focus of consumers on holistic wellness and community-centric fitness environments further underlines the attractiveness of boutique fitness options. As consumers become more aware of mental health and wellness benefits, the potential for brands in this sector to innovate and grow becomes even greater.

Rationale Behind the Deal

The decision for Eagle Merchant Partners to invest in Aligned Fitness stems from the strong alignment between the firm's investment strategy and the growth potential of the boutique fitness sector. With a proven leader in Jon Smith and the founding team at the helm, Eagle sees substantial growth opportunities through both new studio openings and acquisitions, providing a foothold in a rapidly expanding market.

Additionally, the Club Pilates franchise's established brand and a loyal member base contribute to its attractiveness as a target for investment. Eagle's capital and expertise, particularly in scaling multi-unit franchises, will enhance Aligned Fitness's operational efficiency and overall growth trajectory.

Investor Information

Eagle Merchant Partners is a private equity firm with a clear focus on control investments in founder-owned, lower middle-market companies within the Southeastern United States. With an emphasis on sectors such as franchising, multi-unit operations, and commercial services, the firm partners closely with management teams to foster growth and establish enduring value.

The firm recently closed Eagle Merchant Partners Fund II with $415 million in capital commitments in May 2025, signifying robust investor confidence in its strategic vision and operational expertise. Eagle's experience in the health and wellness sector, highlighted by prior investments in companies like AYA Medical Spa and United Planet Fitness, underlines its capacity to advance the Aligned Fitness platform successfully.

View of Dealert

From an investment perspective, Eagle’s investment in Aligned Fitness appears to be a sound decision given the strong market dynamics favoring boutique fitness. The firm's strategic approach to scale the business through new studio development and acquisitions aligns effectively with the growing demand for innovative fitness solutions, particularly in the post-COVID landscape.

The operational support provided by Eagle, coupled with the experienced leadership of Aligned Fitness, presents a strong foundation for potential profitability and long-term growth. The brand's alignment with health and wellness trends is particularly promising, signaling a favorable outlook for continued expansion.

Furthermore, the recent acquisitions of Crescent Concepts and Next Twenty illustrate a proactive approach to enhancing market share and brand presence. By positioning itself strategically in the dynamic fitness industry, Eagle Merchant Partners is likely to unlock significant value over time.

Overall, considering the positive growth trajectory of the Pilates sector and the proven business model of Aligned Fitness, Eagle’s investment is poised to offer promising returns while contributing to the broader fitness community.

View Original Article