TRX® COMPLETES STRATEGIC GROWTH RECAPITALIZATION

Founder Partners with Industry-Focused Private Equity Firm to Power Next Chapter of  TRX’s Ongoing Mission as the Global Leader in Functional Training Solutions & Programming  

San Francisco – January 16, 2019 – TRX® is pleased to announce it has successfully recapitalized the business with a strategic growth capital investment from Equity38, LLC (“Equity38”). Structured as a management buyout of previous investors by Equity38, the partnership was ideal for TRX in that it maintains the company’s existing infrastructure, led by Founder/CEO and former Navy SEAL, Randy Hetrick; while also arming TRX with the capital and significant additional category expertise and resources from Equity38, to further develop the TRX brand and business to an even higher level.

Founded by Hetrick in 2004, TRX is the global leader in functional training solutions and the pioneers behind Suspension Training®, the bodyweight-based exercise method that became a worldwide phenomenon.  Equity38 is a consumer-focused private equity firm co-founded in 2018 by Brent Leffel and David Cox. Leffel and Cox bring significant category experience to the partnership, having previously worked as principal investors, c-level executives and board directors with prominent fitness brands that include, New Evolution Ventures UFC GYM, US Fitness, Crunch Fitness, Barry’s Bootcamp and Orange Theory Fitness.  

“I couldn’t be more excited to welcome the Equity38 team into the TRX family,” said Hetrick. “This partnership came together in the most organic and serendipitous way imaginable. I asked a longtime industry friend, Leffel, to lend me his expertise to help kickstart a growth initiative we’d been struggling to launch in 2017. He started Equity38 with Cox, midstream through our project, and we were able to put a deal together to recapitalize the company. In addition to arming TRX with a war chest of growth capital, Equity38 brings deep experience in our industry and their active involvement in the business and stewardship will be an important part of our next chapter.”

“I got to know Randy early in my travels through the fitness industry, and I’ve always admired what he has accomplished as an entrepreneur, said Leffel, co-Managing Partner of Equity38. “Randy and his team have built the world’s premier training and education company with a foundation in science-based movement benefiting everyone from novice fitness participants to professional athletes. TRX is a strong brand that is  supported by strong macro and micro tailwinds and an unparalleled eco-system of passionate brand supporters, creating a tremendous platform which showcases innovative products and services. Despite its significant growth and global impact, TRX has only begun to scratch the surface of what it can become, and we are excited to lock arms with Randy and his team to realize the brand’s full potential.”

Hetrick created a forerunner to the TRX Suspension Trainer® while deployed to Southeast Asia out of necessity to keep his squadron fit without transporting heavy training equipment to remote

TRX COMPLETES STRATEGIC GROWTH RECAPITALIZATION

locations. After 14 years as a SEAL Officer, culminating his career as Squadron Commander of the SEALs’ elite special missions’ unit, Hetrick attended Stanford University to earn his MBA. At Stanford, Hetrick refined the Suspension Trainer and developed the TRX System after gaining the attention of Stanford athletes, coaches and trainers. TRX revitalized the category of bodyweight training and now provides a full-range of mobile, versatile fitness solutions to health-conscious consumers. The Company’s products are patented, highly portable and provide hundreds of exercises for a total workout experience. Since its inception, TRX has sold millions of units to trainers and clubs around the world and has broadened its product line to include an entire ecosystem of functional training gear, infrastructure, professional education courses and individualized exercise content. It is now poised to add a new range of services and content leveraging its broad reach and significant brand DNA.

ABOUT TRX®  

As the global leaders in functional training, the company’s mission is to democratize world class training and enable everyone, everywhere to move better throughout life. TRX develops the world’s best training equipment, workout programs, and education courses to help people of all fitness levels become better versions of themselves. The company is also the industry’s leading provider of specialized education courses for fitness professionals.  TRX redefined the application of bodyweight training to enhance human performance and has successfully disrupted the mature landscape of the health club industry.

TRX began in a garage and recently completed its 14th year in the market. With a full-time staff of 100 team members, the brand is also supported by a cadre of 350 certified, contracted master instructors who deliver more than 1,500 ongoing education courses each year to fitness professionals in dozens of countries. During the past decade, TRX qualified more than 300,000 training professionals—who comprise a formidable army of ambassadors around the globe. The brand enjoys the patronage of the top professional athletes in every sport, and its equipment and training philosophy is changing the way that soldiers train for combat, athletes at all levels train for competition and regular people of all ages and abilities train for life. For more information about TRX, please visit www.TRXTraining.com.

ABOUT Equity38

Equity 38 LLC is a boutique principal investment firm focused on lower middle market opportunities in the consumer-facing Health/Wellness, Active Lifestyle, and Outdoor sector. The firm’s Managing Partners have complementary experience as principal investors, entrepreneurs, board members and c-level industry executives.  The firm was founded in 2018 by Brent Leffel and David Cox with offices in Newport Beach, CA and Atlanta, GA. Equity38 LLC is currently investing out of its first committed fund. For more information, please visit www.equity38.com.

Introducing Equity38

A new private equity firm, Equity38, LLC, has been launched by David Cox, formerly a Managing Director at Source Capital and a Principal at Summit Park and Dogwood Equity, and Brent Leffel, formerly CEO of UFC GYM, President of New Evolution Ventures and a Managing Director at Angelo, Gordon & Co. 

Equity38 will invest between $5 million and $20 million in control or control oriented growth, buyout and recapitalizations of consumer-facing health, wellness, active lifestyle and outdoor companies.  The firm held a first closing of $40 million for its inaugural investment vehicle, Equity38 Investment Platform I, which is targeting $80 million in commitments.  In conjunction with this closing, Equity38 made its first platform investment, a growth buyout in a West Coast based multi-unit superfood café concept – Beaming Wellness, LLC.  

Other members of the firm’s team include Marty Mooney, Michelle Maciel and Sarah Williams.

Equity 38 has offices in Atlanta, GA and Newport Beach, CA.  (www.equity38.com).

 

Beaming Investment Partners with Equity38

Beaming Investment Press Release

SAN DIEGO — Beaming Wellness, LLC (“Beaming” or the “Company”) is pleased to announce that it has received a significant growth capital investment from an investor group led by Equity38, LLC.  Beaming is an organic, super-food, health and wellness company with seven café locations in Southern California. The Equity38 investor group includes Patrick Farley, Ryan Lash and John Klein.

Farley is a seasoned fast casual restaurant entrepreneur, having founded Flippin’ Pizza and Choice Juicery.  Lash is a digital-transformation entrepreneur who founded and successfully exited ymarketing at the end of 2017.  John Klein is a tenured Equinox executive who recently founded Accelerator Advisors to advise emerging businesses Retail and Food and Beverage Experiential brands on their real estate strategies.  In connection with the transaction, Farley has become Chairman and CEO of the Company and Lash and Klein have joined the Board of Directors, with oversight responsibilities for digital and real estate strategy, respectively.  

“Beaming is a world-class brand with terrific products and I’m excited to build upon the strong efforts of the founder and prior shareholder group in establishing the brand and leading the company through a growth phase, which will include opening new locations, expanding the geographic footprint and online product offering,” said Patrick Farley.  

Brent Leffel and David Cox, co-Managing Partners of Equity 38 added, “Beaming’s best-in-class product offering and excellent brand DNA give the company a solid foundation for growth.  We look forward to working with Patrick, Ryan and John in building the company to its significant potential.”

About Beaming Wellness

Founded in 2011, Beaming is an organic, super-food, health and wellness company with seven café locations in Southern California.  The Company’s mission is to inspire and empower people of all ages to experience greater health, happiness and vitality through the power of nutritious plant-based foods that taste amazing.  More information about Beaming can be found at www.livebeaming.com.

About Equity 38

Equity 38 LLC is a boutique principal investment firm focused on lower middle market opportunities in the consumer-facing Health/Wellness, Active Lifestyle, and Outdoor sector. The firm’s Managing Partners have complementary experience as principal investors, entrepreneurs, board members and c-level executives.  The firm was founded in 2017 by Brent Leffel and David Cox with offices in Newport Beach, CA and Atlanta, GA. Equity38 LLC is currently investing out of its first committed fund. For more information, please visit www.equity38.com.

About Accelerator Advisors, LLC

Accelerator Advisors, LLC consults in the strategic planning process for Retail and Food and Beverage Experiential brands on new market and real estate strategic planning, and then identifies, secures and develops retail locations for accelerated growth across multiple markets.