LIFTS Episode 129 - Wall Street's Fitness Investment Playbook: What Builds Value & What Kills Deals | with Aarti Kapoor

Welcome to LIFTS, where we explore the future of fitness, wellness, and human performance. In this episode, hosts Matthew Januszek and Mohammed Iqbal are joined by Aarti Kapoor, investment banker, fitness industry advisor, and one of the leading voices at the intersection of fitness, capital markets, and business growth. This conversation explores how investors evaluate fitness businesses, what separates scalable brands from lifestyle businesses, and why some concepts attract capital while others struggle to generate interest. Drawing on her experience advising fitness and wellness brands, Aarti shares how investors assess opportunities, the key metrics that drive valuation, and why factors such as brand strength, unit economics, market positioning, management teams, and growth runway often matter more than founders realise. The discussion also examines some of the biggest shifts shaping the industry today, from the evolution of boutique fitness and lessons from SoulCycle, to the rise of high-value low-price operators, the growing influence of franchising, and what investors now expect from businesses seeking capital. Aarti also explains why many founders focus on growth while investors focus on scalability, why clean financials and comparable data are essential, and how operators should think about preparing their businesses for future investment, acquisition, or expansion. For fitness operators, founders, investors, suppliers, and industry leaders, this episode offers a rare look inside the investment playbook shaping the future of fitness. In this episode, we cover: What investors really look for in fitness businesses The metrics that drive valuation and growth Lessons from SoulCycle, boutique fitness, and HVLP operators Why some fitness brands attract investment and others don't The role of franchising in scaling fitness businesses What founders should know before seeking investment 👉 To learn more about Aarti Kapoor, click here: https://www.linkedin.com/in/aarti-kapoor1/ 👉 Follow Aarti Kapoor on Instagram: https://www.instagram.com/aarti__kapoor/ 👉 To learn more about our sponsor EGYM, click here: https://bit.ly/3JzsosR Support fitness industry news by sponsoring future LIFTS episodes. Contact us at [email protected] for advertising opportunities. Subscribe to our YouTube channel and turn on notifications so you never miss a new video when it's published: https://www.youtube.com/user/EscapeFitness Or if you prefer, you can receive the latest news direct to your inbox, subscribe here: https://www.liftspodcast.com/newsletter Join the conversation at LIFTS: https://www.linkedin.com/company/liftspod https://www.instagram.com/lifts.podcast/ Timestamps 0:00 Why SoulCycle's Decline Matters 7:11 The Investment Thesis That Changed Fitness 11:28 The 3 Metrics Every Investor Watches 14:27 What COVID Changed Forever 17:43 SoulCycle's Biggest Challenge 21:56 Why Money Is Flowing Into HVLP 26:55 How Investors Pick Winners 31:21 Can You Predict The Next Big Trend? 35:31 Why Franchises Get Higher Valuations 39:39 The Valuation Mistakes Founders Make 48:20 What Every Fitness Founder Should Know