Ex-XP Exec Replicates Brokerage Model for Gym Network

A former key executive from XP Investimentos, Caio Peres, is spearheading a significant strategic shift at SkyFit, a Brazilian fitness chain. Having previously been instrumental in scaling XP's autonomous agent network across Brazil for 17 years, Peres has now acquired SkyFit and aims to replicate that success by empowering gym owners, much like he did with investment advisors.

The acquisition, led by Peres and a consortium of investors including NVA Capital (backed by Marcelo Maisonnave, Eduardo Glitz, and Pedro Englert) and Bird Capital (founded by ex-Patria's Gustavo Moraes), saw approximately R$ 400 million exchanged. This valuation represents a multiple of 5.5x the projected EBITDA for the current year. The transaction was further supported by credit from Itaú BBA, underscoring the financial backing for this ambitious venture. The investor group also comprises around 30 individuals primarily from the financial and technology sectors.

SkyFit, which currently operates 370 franchised locations spread across 22 Brazilian states, is set to undergo a transformation mirroring XP's growth playbook. Peres intends to recruit local entrepreneurs, offering them the technological infrastructure, comprehensive training, data analytics, and collective bargaining power that enabled XP's rapid expansion. "The goal is to demonstrate that while an individual can establish a gym independently, partnering with us offers a significantly smoother path. We will provide hands-on guidance and education," Peres stated, drawing parallels to his experience assisting aspiring entrepreneurs at XP.

To drive this vision, Peres has assembled a core leadership team comprised of former XP colleagues. Henrique Meirelles has joined as CFO, Amanda Coelho as COO and CTO, Guilherme Leite as Commercial Director, and Paulo Siqueira as Head of Engineering. Furthermore, a partnership structure, akin to XP's model, has been implemented to grant key executives equity stakes, aligning their incentives with the company's long-term success.

Founded in 2020 by Bruno Berardo and Everton Carvalho, SkyFit has experienced rapid growth, expanding from 320 to 370 academies and reaching one million members in just four months since the investor group's takeover. The company exclusively operates through franchises, a strategy Peres intends to maintain. With an average revenue of R$ 200,000 per unit, SkyFit anticipates R$ 800 million in revenue for the year, with franchisees maintaining a 30% margin, while SkyFit retains 10% of unit revenue.

This franchise-centric, asset-light approach significantly reduces capital expenditure for franchisees. Establishing a SkyFit academy requires an investment of approximately R$ 1.5 million, a stark contrast to the R$ 3.8 million needed for a Smart Fit franchise. This cost efficiency is largely attributed to a leasing model for fitness equipment, allowing franchisees to acquire necessary machinery for a monthly fee (R$ 35,000 to R$ 40,000) rather than a substantial upfront purchase, which can exceed R$ 1.3 million. This strategy positions SkyFit to target smaller cities and underserved peripheral regions, areas often overlooked by larger competitors like Smart Fit, which primarily focuses on company-owned locations.

SkyFit has identified 1,500 potential new markets in Brazil, aiming to capture a share of the estimated 70,000 independent gyms. Peres aims to elevate the service standard in the low-cost fitness segment, which he believes is currently characterized by low value. The company's aggressive expansion plan includes opening approximately ten new academies monthly, targeting 1,000 units within five years. Long-term, Peres envisions SkyFit surpassing Smart Fit in total academy count within Brazil within the next five to ten years, driven by its scalable, asset-light franchise model.