WellnessLiving Secures US$66 Million Investment from McCarthy Capital and CIBC Innovation Banking to Accelerate Growth
TORONTO, ON. — August 16, 2022 — WellnessLiving (the “Company”), which provides a cloud-based business management software and integrated payments platform for fitness and wellness operators, announced that the Company has partnered with McCarthy Capital to accelerate its growth. In addition to McCarthy Capital leading the $46 million minority investment, CIBC Innovation Banking has provided $20 million in growth financing, bringing the total raised this round to US$66 million.
Founded in 2013, WellnessLiving develops multi-tenant business management software to allow business owners to schedule classes, appointments and events, manage staff, process payments and increase member engagement. The Company serves an international market with customers in North America, Europe, Australia and New Zealand.
The partnership will accelerate WellnessLiving’s international expansion efforts, ongoing product development and the buildout of robust features for franchises and multi-location enterprises. In addition, the Company will add to existing partnerships and pursue accretive acquisitions as the customer base expands.
“After meeting with dozens of exceptional institutional investors, we selected McCarthy Capital for their deep understanding of our space, alignment with our vision, and exemplary track record of supporting high growth companies,” said Len Fridman, WellnessLiving’s co-founder and CEO. “Chase Meyer and Thomas Sudyka of McCarthy Capital are valuable additions to our board. Additionally, I’m excited to announce that Brice Scheschuk, Managing Partner at Globalive Capital will also be joining as a board member and Dan Houghton, Buildertrend’s CEO will be joining as a board advisor. We are particularly pleased that Mark Nashman of INcapital Ventures and Bobby Halpern of Halpern & Co. are also participating in the round, indicating their continued support and high confidence in our growth plan.”
“This partnership comes at a great inflection point for WellnessLiving as we continue to add new customers at record breaking levels to our platform and help each one of them reach their performance potential and realize their entrepreneurial dreams,” said Len Fridman. “McCarthy Capital has a proven history of scaling software businesses, and we are excited to further accelerate WellnessLiving’s growth trajectory with their support.”
“We are thrilled to partner with the management team of WellnessLiving,” said Chase Meyer, Partner at McCarthy Capital. “The Company’s passion for customer service is impressive. We believe their customer-centric approach is critical for long-term value creation – both for WellnessLiving and their customers. We look forward to partnering with WellnessLiving as they continue to invest in their people and product.”
Koley Jessen and Fasken served as legal advisors, Armanino LLP served as accounting advisor and William Blair served as financial advisor to McCarthy Capital. GLC Advisors served as financial advisor to WellnessLiving with Goodmans serving as legal counsel.
WellnessLiving is a member management software solution which provides a single-instance, multi-tenant business management software and integrated payments platform for fitness and wellness operators (e.g., yoga, pilates, fitness, martial arts, spa and salon). The software allows business owners to schedule classes / appointments, manage staff, process payments and engage with their members.
About McCarthy Capital
McCarthy Partners Management, LLC is a registered investment advisor that conducts business as McCarthy Capital. McCarthy Capital, headquartered in Omaha, Nebraska, is focused exclusively on lower middle-market companies. For more than 35 years, the McCarthy organization has been partnering with founders, families and exceptional management teams to support the growth of their companies. More information about McCarthy Capital can be obtained at www.mccarthycapital.com.