Case study · Private equity · Golf & leisure
Invited Clubs
An independent LBO analysis of KSL Capital Partners’ acquisition of Invited Clubs, modeling a $2.6B enterprise value, a membership-led operating plan, and sponsor returns over a six-year hold.
Independent student underwriting. Operating projections and returns are illustrative model estimates, not disclosed company results; see Sources & Methodology in the workbook.
Download Excel ModelView the complete assumptions, cash flows, and projected returns.
- Enterprise Value
- $2.60B
- modeled acquisition price
- Entry Multiple
- 7.43×
- on $350M LTM EBITDA
- Levered IRR
- 19.4%
- 6-year hold
- Levered MOIC
- 2.69×
- on $952M sponsor equity
01 · The Business
A membership-led golf platform, underwritten for growth and deleveraging.
The model evaluates Invited Clubs, a Dallas-based private club operator, through KSL Capital Partners’ acquisition from Apollo Global Management. Its baseline assumes 150 clubs, 430,000 members, and $350M in 2025 LTM EBITDA. The workbook separates its sourced transaction inputs from estimated operating assumptions; this page presents the underwriting case rather than independently verified transaction terms.
The $2.652B sources-and-uses model includes $52M of entry fees, $1.7B of first-lien private credit, and $952M of sponsor equity. Financing is modeled at 9.53% all-in interest, with 1% annual mandatory amortization and a 50% sweep of excess free cash flow. The six-year exit assumes 7.00× EBITDA, below the 7.43× entry multiple.
02 · Investment Thesis
Recurring membership revenue, measured growth, and a disciplined capital structure.
Membership
The model assumes 1.5% annual member growth. Revenue grows 4.0% in Year 1 and 4.5% thereafter, reflecting both membership expansion and greater revenue per member.
Operations
EBITDA margin expands 25 basis points per year, from 23.3% to 24.8%. Maintenance and growth capital expenditures remain at a combined 7% of revenue.
Capital
Mandatory amortization and a 50% cash sweep reduce debt while retaining cash distributions to equity. The return case does not require exit multiple expansion.
03 · Financial Analysis
EBITDA reaches $482.8M by Year 6.
From a $350M baseline, modeled EBITDA rises to $367.9M in Year 1 and $482.8M in Year 6. Ending debt falls to $1.185B, supporting a $3.38B exit enterprise value at 7.00× EBITDA.
- Levered IRR
- 19.4%
- Levered MOIC
- 2.69×
- Unlevered IRR
- 14.0%
- Unlevered MOIC
- 1.93×
- Exit Debt / EBITDA
- 2.45×
04 · Key Assumptions
Underwriting Summary
- Enterprise Value
- $2,600,000,000
- Buyer / Seller
- KSL Capital Partners / Apollo
- Headquarters
- Dallas, TX
- Clubs / Members · baseline
- 150 / 430,000
- 2025 LTM EBITDA
- $350,000,000
- Senior Debt
- $1.70B · First-lien private credit
- Sponsor Equity
- $952,000,000
- Opening Debt / EBITDA
- 4.86×
- Interest / Amortization
- 9.53% / 1% annually
- Hold / Exit Multiple
- 6 Years / 7.00×
05 · Analyst Takeaway
Key Takeaways
The model’s return case is built on operating growth and debt paydown, not a richer exit valuation. The returns bridge attributes 71.8% of gross equity value creation to EBITDA growth and 39.8% to deleveraging, offset by an 11.6% drag from multiple contraction. That produces a modeled 19.4% levered IRR and 2.69× MOIC. The central underwriting question is whether member growth and margin expansion remain achievable after reinvestment and debt service; these are estimated assumptions, not disclosed company forecasts.