Equinox in talks for investment from Silver Lake to better compete with Peloton
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Equinox, the upscale fitness club operator and majority owner of SoulCycle, is in "advanced discussions" for an investment from Silver Lake, per Bloomberg. Proceeds would be used to help Equinox expand a digital and at-home hardware platform it launched last summer to compete with Peloton.
Why it matters: This would seem to be something of a philosophical change for Equinox, whose executive chairman Harvey Spevak told me on stage in early 2018 that while he admired what Peloton had done, "SoulCycle is a cardio party... there's no replacement for community and experience, and you can't get that at home no matter how great the execution is."
- When I emailed him this morning, Spevak wrote back: "Just remember don’t believe everything you read:)"
The bottom line: "The New York-based company is searching for new investors after some members boycotted its brands in response to a decision by part-owner Stephen Ross, the billionaire founder of Related Cos., to host a fundraiser for President Donald Trump’s re-election campaign. Spevak... told members that Ross had no role in running the company and touted its donations to causes promoting diversity and inclusivity," Bloomberg writes.
Go deeper: Fitness streaming company iFit raises $200 million