Private equity firm Permira has been revealed as one of the leading bidders for luxury health club operator Third Space, in a deal that could value the fast-growing business at between £700m and £1bn

According to Sky News, Permira has begun work on a potential offer ahead of a formal sale process later this year. Goldman Sachs is advising Third Space's owner, KSL Capital Partners, on the sale, with the US investment firm reportedly seeking a valuation of between £700m and £1bn.

The Sunday Times recently reported that KSL was preparing to explore a sale at a valuation of around £700m. Sky News has now identified Permira as an active bidder and reported that KSL is targeting an even higher valuation, highlighting strong investor appetite for premium wellness brands.

Third Space has become one of London's fastest-growing premium fitness and wellness operators. The company runs 15 clubs across the capital, including locations in the City, Soho, Clapham Junction and Wimbledon, and plans to more than double its estate to 31 sites by the end of 2031.

The business has delivered strong financial growth. Revenue increased 43% to £99m in 2024, while underlying profit reached £26.3m and pre-tax profit more than doubled to about £11.1m.

KSL acquired a majority stake in Third Space in 2021 from Encore Capital, another equity firm. Last October, the company secured £75m of debt financing from OakNorth and existing lender Searchlight Capital to support its expansion programme.

A potential acquisition would also fit Permira's long-standing investment strategy, which has included premium consumer and lifestyle brands such as Dr. Martens, Hugo Boss and Valentino (the vehicle also owns assets in the technology sector).

Permira have yet to publicly comment, and no formal offer, financing details or transaction structure have been disclosed.

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