Dubai-based fitness operator GymNation has secured a USD 100 million private credit facility from HPS Investment Partners, a global investment firm which is part of BlackRock. The funding is set to accelerate the company’s expansion across the GCC, deepen its investment in AI and data infrastructure, and support its first push into Asian markets.
Quick Facts
- Secured $100M in private credit from HPS Partners.
- Expanding to over 100 locations within three years.
- Preparing for first international expansion into Asia.
Fueling a Three-Pronged Growth Strategy
The new capital injection will back three core priorities for GymNation. First is aggressive geographic expansion within the Gulf, with a target of growing from nearly 50 locations to over 100 within the next three years. This includes strengthening its presence in Saudi Arabia, the UAE, and Bahrain. As a key part of this strategy, the company is establishing a new regional headquarters in Riyadh, underscoring Saudi Arabia’s growing importance to its business.
The second priority is technology. GymNation plans to enhance its proprietary platform, dedicating more resources to AI, machine learning, and data infrastructure to optimize pricing, streamline operations, and improve customer retention.
Finally, the company is preparing for its first expansion beyond the Gulf region with a planned entry into Asia. This move will test the scalability of its affordable fitness model in new, high-growth markets.
Private Credit and a Fresh Chapter
The financing is structured as a USD 75 million committed facility, with an additional USD 25 million accordion feature available for future needs. The deal demonstrates the rising appeal of private credit for regional companies seeking to scale without traditional equity fundraising or going public.
This transaction also facilitates an exit for early backer Ruya Partners. The firm had previously supported GymNation’s 2023 management buyout alongside Tricap Investments, a move that gave the founding team—Loren Holland, Frank Afeaki, and Ant Martland—full control of the business ahead of this new financing round.
A Signal for GCC Consumer Brands
GymNation’s ability to attract significant institutional capital from a global player like HPS signals continued investor confidence in high-growth GCC consumer businesses, even amid regional geopolitical volatility. The deal highlights a trend where companies with predictable, recurring subscription revenues are becoming prime targets for later-stage financing.
While venture capital in the region often focuses on early-stage tech, this transaction shows a growing appetite from larger institutional investors for established consumer brands that have proven their ability to scale across multiple Gulf markets.
About GymNation
Founded in 2018 by Loren Holland, Frank Afeaki, and Ant Martland, GymNation launched with a mission to make fitness more affordable and accessible. Starting with its first location in Al Quoz, Dubai, the company has since grown to operate nearly 50 gyms across the UAE, Saudi Arabia, and Bahrain.
Source: Waya
