KKR is considering a sale of The Bay Club Company, a West Coast operator of premium membership and lifestyle clubs, in a transaction that could value the business at roughly $3bn, according to a report by Reuters citing unnamed sources familiar with the matter.
The private equity firm has reportedly engaged Moelis and Morgan Stanley to oversee the process, which remains in its early stages.
Founded in San Francisco in 1977, The Bay Club has expanded from a single location into a network of more than 35 clubs across California, Oregon and Washington. Its facilities include golf courses, tennis and pickleball courts, fitness centres, swimming pools, restaurants, spa services and youth programmes.
The company has significantly grown its membership base since KKR acquired the business in 2018. Membership has increased from more than 50,000 members at the time of acquisition to over 150,000 today, with monthly subscription fees ranging from approximately $100 to $445 in addition to initiation charges.
A potential transaction would continue a broader wave of dealmaking across the membership club and leisure sector. Earlier this year, KSL Capital Partners agreed to acquire Invited Clubs from Apollo Global Management in a deal reportedly valued at around $3 billion. Other recent transactions include Bain Capital’s acquisition of Concert Golf and the take-private of Soho House by an investor group led by MCR Hotels alongside Apollo and actor Ashton Kutcher.
KKR, Morgan Stanley and Moelis reportedly declined to comment on the potential sale process, while The Bay Club did not immediately respond to requests for comment.
