Bridges Sustainable Growth Funds

Bridges became interested in the low-cost gym concept in 2006, when we started thinking about how to invest for impact in the ‘health and well-being’ area. Discovering that there was no such business in existence in the UK, we developed the idea in-house, and teamed up with entrepreneur John Treharne to launch The Gym Group in 2007.

The Gym provides state-of-the-art fitness facilities in purpose-built gyms which are open 24-hours, 7-days-a-week and are located mainly in underserved areas, offering flexible memberships from as little as £10.99 per month. A pioneer of the low-cost gym concept in the UK, The Gym has now expanded to over 80 across the UK, with over 420,000 members, one-third of whom are first-time gym users.

Bridges initially sold a portion of its majority stake to Phoenix Equity Partners in 2013, to fund the next phase of The Gym’s growth, representing a 50% IRR and 3.7x multiple. Some of the proceeds were rolled over so we could retain a 25% stake in the business, enabling Bridges’ investors to benefit from further growth.

In 2015, Bridges and Phoenix Equity Partners successfully sold shares equivalent to 50% of the business via an offering on the London Stock Exchange. The initial offer price values the business at £250m – and values Bridges’ investment in The Gym at about 5.8x cost.

Plant-based proteins are considerably less resource-intensive in comparison to meat products. They are also increasingly popular with health-conscious consumers, not least because they have been linked to a reduced risk of diabetes, heart disease and cancer.

Vegetarian Express is the UK’s leading supplier of specialist plant-based ingredients to the food service industry, with an unmatched range of over 1,000 products (including tofu, tempeh, quinoa, nuts, spices, pulses etc.) and unrivalled sourcing capabilities. It has a strong service culture, working closely with chefs to develop new menu ideas, and its ingredients are already consumed across 2,500 catering locations in the UK, which collectively serve over 1 million diners.

Bridges will work to support Vegetarian Express’s growth plans of distributing a broader range of ingredients to its existing food service sites more frequently, while also opening up delivery routes to new customers throughout the UK.

A reduction in greenhouse gas emission levels in the UK. Systemic impact through wider consumer adoption of lower meat, sustainable diets. ESG opportunities in sourcing, supply chain and logistics.