GymNation secures more (funding) muscle, this time from BlackRock’s HPS Investment Partners

UAE-founded gym operator GymNation secured a USD 100 mn private credit facility from funds managed by BlackRock-owned HPS Investment Partners, in one of the larger recent private-credit wagers on a GCC-born consumer brand, according to a statement. The package includes USD 75 mn in committed capital plus a USD 25 mn accordion tranche.

The funding also marks the exit of old backers Ruya Partners. The ADGM-based private credit firm said the HPS facility repaid its USD 25 mn facility in full, extended back in 2023, and called it “a fitting endorsement” of GymNation’s growth, though it did not disclose a specific reason for the timing of its exit.

What the capital is for: The fast-growing fitness chain plans to expand to more than 100 locations over the next three years across the GCC, backed by a new regional HQ in Riyadh and a planned Asia entry. CEO Loren Holland said the funding gives the low-cost gym operator room to grow “across the GCC and beyond” despite a “challenging geopolitical environment.” That’s up from 50 locations currently in the UAE, Saudi Arabia, and Bahrain.

Not just a bricks-and-mortar play: Part of the capital will also go into GymNation’s proprietary tech platform, data, AI, and machine-learning infrastructure — suggesting the next phase is as much about scaling its operating stack as it is about expanding its physical footprint.

Another vote of confidence from BlackRock: The HPS backing adds to BlackRock’s wider GCC push despite the war. Just last week, BlackRock-backed GIP joined Temasek, L’imad Holding, and Adnoc on a USD 30 bn infrastructure platform targeting strategic assets across the GCC and Central Asia.

ADVISORS- Tatsu Partners were lead debt advisors to GymNation, while DLA Piper served as counsel. PwC provided financial due diligence and tax advisory services.