How Neel Bhargava Scaled a Crunch Fitness Investment
Neel Bhargava shares how a minority stake in a Crunch franchise grew from 10 to 74 gyms, driven by thematic focus, recapitalizations, and strong management.
Neel Bhargava’s route to becoming an independent sponsor was unconventional; he was a growth equity investor and then a venture investor at the New York Times, among several other experiences. Neel pivoted into entrepreneurship by launching NB Group in 2016. What followed was a textbook example of how a flexible and relationship-driven approach can create outsized value.
The Crunch Fitness deal, Neel’s first as an independent sponsor, wasn’t a majority control buyout. It began as a minority investment behind a high-performing franchisee operating 10 gyms and generating $4.5m in EBITDA. Over just 18 months, the business doubled both in gym count and EBITDA. Today, it has grown to 74 locations and has been recapitalized multiple times, with Bhargava’s team still holding a passive minority interest.
The secret the success included working alongside a proven, high-performing management team. While many sponsors seek full control, Neel emphasized the flexibility independent sponsors can bring to the table.
This flexibility allowed NB Group to pivot from a planned majority deal into a minority structure when the sellers got cold feet, without compromising alignment or governance. Neel and his capital partners secured key minority rights, including veto power over capex and exit terms, allowing them to maintain influence without operational control.
Their success was also a result of a clear thematic focus. Instead of casting a wide net, NB Group narrowed in on high-value, low-price gym concepts in the health and wellness sector. Neel believes this space is both capital efficient and scalable, which he explains in detail during the interview.
Since launching NB Group in 2016, Neel has witnessed the independent sponsor space evolve from a fringe and frowned-upon model to a more widely recognized and competitive landscape. Today, more sellers and intermediaries understand what sponsors bring to the table, but deal flow remains the hardest part. As Neel puts it, raising capital has never been the real constraint. Finding proprietary, quality deals is (still) where the game is won.
Check today’s new episode of the Minds Capital Podcast with Neel Bhargava.
More recent episodes
Grew EV 10x in 5 Years
Ben Rudman knew he wanted to work in food before he knew what investment banking was. His first independent sponsor deal, Western Smokehouse Partners, started with ~60 employees in 2018. By the time it sold 4.5 years later, it had almost 700 employees across 4 facilities and enterprise value had grown ~10x.
On the Ground at McGuireWoods 2026
Recorded from McGuireWoods in Dallas after Day 1, Niklas, Max & Will compare notes from the conference floor. Last year had ~2,000 attendees and this year felt bigger. The Minds team had ~30-40 meetings, found 3-5 qualified deal leads & ~6 prospective podcast guests. The day before, Minds hosted its annual Investor Day with 70+ RSVPs from 142 LPs and 8 portfolio sponsors attending.
32x MOIC After 100 Investors Said No
Since Kevin Ramsier's last appearance on this podcast, his firm, Sier Capital, has closed a new infrastructure platform (where Minds Capital is an investor) and exited another business that generated a 32x MOIC over a 7-year hold. The same business started with 95% customer concentration and nearly 100 investors said no.