Uncovering the Truth: Who Really Owns Life Time Fitness?

AvatarByJeff Duncan Fitness

Life Time Fitness is a household name in the world of fitness and wellness. From state-of-the-art facilities to top-notch amenities and services, it has become a go-to destination for health enthusiasts. But have you ever wondered who owns this successful fitness empire? The answer may surprise you. From its humble beginnings to its current status as a prominent brand, the ownership of Life Time Fitness has gone through some intriguing changes. In this article, we will dive into the history of Life Time Fitness and uncover the faces behind this industry leader. So, let’s find out – Who Owns Life Time Fitness?

[h2] Introduction [/h2]

Life Time Fitness is a popular and well-known health club chain in the United States. With a focus on providing a comprehensive and all-inclusive approach to wellness, Life Time Fitness offers various facilities and services such as fitness classes, personal training, spa services, and even child care. But have you ever wondered who owns this successful company? In this article, we will delve into the details of who owns Life Time Fitness and how they have built it into the brand it is today.

[h2] The History of Life Time Fitness [/h2]

Before we dive into the ownership of Life Time Fitness, let’s take a brief look at its history. The first Life Time Fitness club was opened in Brooklyn Park, Minnesota in 1992 by Bahram Akradi. Akradi had a vision to create a health club that not only focused on physical fitness but also on overall well-being. This idea caught on, and within a few years, more locations were opened in other states such as Colorado, Arizona, Texas, and California.

[h2] Who Owns Life Time Fitness? [/h2]

The owner of Life Time Fitness is Bahram Akradi who also serves as its CEO and chairman. Akradi has been at the helm of the company since its inception in 1992. His passion for fitness and wellness has been the driving force behind his success in building one of the most successful health clubs in the United States.

[h2] Bahram Akradi: The Visionary Behind Life Time Fitness [/h2]

Bahram Akradi was born in Tehran, Iran but raised in Baghdad, Iraq during the Iran-Iraq war. At the age of 16, he moved to Minnesota with his family where he completed his high school education. Akradi went on to study mechanical engineering at Colorado State University but eventually dropped out to pursue his passion for fitness. With limited resources but a big dream, he opened the first Life Time Fitness club in 1992, which has now grown into a multi-billion dollar company with over 150 locations in the US and Canada.

[h2] The Success of Life Time Fitness Under Akradi’s Leadership [/h2]

Under Akradi’s leadership, Life Time Fitness has grown into a highly successful company with over 1.6 million members and annual revenues of more than $1 billion. Akradi’s emphasis on providing a comprehensive approach to wellness has been a key factor in the company’s success. In addition to traditional gym facilities, Life Time Fitness also offers amenities such as basketball courts, swimming pools, rock climbing walls, and indoor and outdoor tennis courts to its members.

[h2] The Unique Business Model of Life Time Fitness [/h2]

What sets Life Time Fitness apart from other health clubs is its unique business model. Unlike other gyms that operate on a membership-based system where members can come and go as they please, Life Time Fitness operates on a proprietary EFT (Electronic Funds Transfer) membership model. This means that members sign up for a commitment period of one to three years and pay monthly dues during that time. This model has allowed the company to have a stable and predictable revenue stream, which has contributed greatly to its success.

[h2] The Growth of Life Time Living [/h2]

In addition to its fitness clubs, Life Time also offers luxury apartment communities known as “Life Time Living.” These communities are designed to provide residents with an active lifestyle by incorporating fitness amenities such as yoga studios, indoor cycling studios, saunas, and strength training areas into the residential buildings.

[h2] Conclusion [/h2]

In conclusion, Bahram Akradi is the visionary behind the successful health club chain known as Life Time Fitness. His passion for overall well-being and unique business model has contributed greatly to the growth and success of the company. With its emphasis on providing a comprehensive approach to wellness, it is no surprise that Life Time Fitness is a leader in the health and fitness industry.

Life Time Fitness is a premier health and wellness company that offers various fitness services, programs, and facilities to its members. It was founded in 1992 by Bahram Akradi and has grown exponentially since then. With its vast array of services and facilities, Life Time Fitness has become a household name synonymous with healthy living and physical fitness. However, many people may wonder who owns this successful company. In this comprehensive content, we will delve deeper into the ownership of Life Time Fitness and shed light on the individuals or entities behind its success.

The Founding of Life Time Fitness

To understand who owns Life Time Fitness, it’s essential to first look at how the company came into being. The story of Life Time Fitness dates back to 1983 when Akradi immigrated to the United States from Iran. He initially started out as an aerobics instructor in California before moving to Minnesota in 1986. In Minnesota, Akradi worked as a general manager at Northwest Athletic Clubs before eventually establishing his own fitness club – FIRM Fitness Center – in 1990. However, due to financial difficulties, FIRM was sold to a group of investors shortly after opening.

With the proceeds from the sale of FIRM and his vision for creating a premier health club experience for individuals and families alike, Akradi founded Life Time Fitness in 1992. The first club was opened in Brooklyn Park, Minnesota, offering comprehensive services such as yoga, swimming pools, daycare facilities among others.

Ownership Structure

Currently, Life Time Fitness operates under a corporation known as , with its headquarters located in Chanhassen, Minnesota. While Akradi is still heavily involved with the day-to-day operations of the company as its Chairman and CEO, he is not the sole owner.

According to SEC filings made in 2015, Akradi owns approximately 9.1 million shares of the company’s common stock, accounting for about 14% of the total outstanding shares. However, these shares are held in a trust, meaning Akradi does not have sole control over them. The majority shareholder of Life Time Fitness is an entity known as Trust Company, which owns approximately 9.6 million shares or 15% of the company’s outstanding shares.

The remaining shares are owned by various entities and individuals, including mutual funds and other investment firms.

Life Time Fitness’ Acquisition by Leonard Green & Partners

In June 2015, Life Time Fitness announced its acquisition by private equity firm, Leonard Green & Partners (LGP), in a deal worth $4 billion. Under the terms of the agreement, LGP would pay $72.10 per share to buy all outstanding common stock of Life Time Fitness. This deal was finalized in August 2015 when Life Time Fitness officially went private and was delisted from NASDAQ.

As a result of this acquisition, Akradi stepped down as CEO but continued to be involved with the company as a board member and consultant. He also remained one of the major shareholders with LGP holding majority ownership.

The Current Ownership of Life Time Fitness

In June 2018, it was announced that would acquire Life Time Fitness from LGP in another multibillion-dollar deal. This came after LGP had expressed an interest in selling its stake and exiting its investment with Life Time Fitness.

Today, , through various entities such as Trust Company and Group LP, holds majority ownership (nearly 71%) in Life Time Fitness while Akradi remains a significant shareholder.

The Role of Private Equity Firms in Ownership

The involvement of private equity firms in owning Life Time Fitness can be attributed to their unique investment model, which involves acquiring a controlling stake in a company with the aim of improving its performance and profitability before eventually selling it off for a higher return on investment.

Such firms typically have a set timeline for their investments, hence the change in ownership of Life Time Fitness within a span of three years. However, it’s worth noting that these firms also play a crucial role in the growth and expansion of companies such as Life Time Fitness.

Who owns Life Time Fitness? The answer to this question is not straightforward as ownership has changed hands several times over the years. However, Akradi has remained heavily involved with the company since its inception and still holds a significant stake in it.

Today, Life Time Fitness continues to thrive under the ownership of , providing its members with top-notch health and wellness services. With its constant growth and expansion, it’s safe to say that is doing an excellent job as the current owner of this premier health and wellness company.

1. Who owns Life Time Fitness?
A: Life Time Fitness is owned and operated by the Life Time, Inc. corporation.

2. Is Life Time Fitness a publicly traded company?
A: No, Life Time Fitness is not a publicly traded company. It was acquired by Leonard Green & Partners and TPG Capital in 2015 and became a private company.

3. Who are the founders of Life Time Fitness?
A: Bahram Akradi founded Life Time Fitness in 1992 with its first location in Brooklyn Park, Minnesota.

4. What is the current state of ownership for Life Time Fitness?
A: In January 2017, Leonard Green & Partners and TPG Capital sold their shares of Life Time Fitness back to founder Bahram Akradi and other investors, making it once again a privately held company.

5. Are there any plans for future ownership changes at Life Time Fitness?
A: No concrete plans for future ownership changes have been announced by Life Time, Inc., but mergers and acquisitions are always possibilities for large corporations like this.

6. Can individual locations of Life Time Fitness be owned separately?
A: Yes, individual franchising opportunities exist for those interested in owning a specific location of Life Time Fitness. However, the overall brand is still owned by the parent company, Life Time, Inc.

In conclusion, Life Time Fitness is owned by two private equity firms, Leonard Green & Partners and TPG Capital. The company has seen tremendous growth since its establishment in 1992 and has become a leader in the fitness industry with its high-end facilities and comprehensive wellness programs. However, the ownership structure has been a subject of controversy as some argue that the focus on profit may compromise their commitment to promoting health and well-being. Despite this, Life Time Fitness continues to expand and innovate, catering to the ever-growing demand for health and wellness services.

Through this discussion, we have learned that ownership plays a crucial role in determining the direction and values of a company. The influence of private equity firms on Life Time Fitness highlights the complex relationship between business goals and promoting health as a core value. As consumers, it is essential to be mindful of these factors when choosing a fitness provider.

Moreover, our understanding of corporate ownership also extends beyond profitability to include social responsibility. While Life Time Fitness operates as a for-profit business, it has implemented various initiatives such as sustainability efforts, community involvement, and employee benefits that align with its mission to help individuals lead healthy and fulfilling lives.

Finally, as the fitness industry continues to evolve and expand, understanding ownership structures can provide valuable insights into its trajectory.

Author Profile

Avatar
Jeff Duncan
Jeff Duncan, the owner and Head Coach of CrossFit Pearl District, is dedicated to fostering a supportive and effective training environment.

With a strong belief in the principles of movement mechanics, consistency, and intensity, Jeff has cultivated a community that thrives on continuous improvement and mutual support.

From 2024, Jeff Duncan has expanded his passion for CrossFit beyond coaching by writing an informative blog dedicated to the CrossFit niche. His blog features a variety of content aimed at providing valuable information and insights to the CrossFit community.

Jeff’s posts cover a wide range of topics including training techniques, nutrition advice, workout routines, and answers to common queries within the niche. This transition to blogging allows Jeff to reach a broader audience, sharing his expertise and helping individuals at all levels of their fitness journey.