KSL Capital Partners closed on its acquisition of Invited Clubs on June 9, acquiring it from Apollo Global Management in a transaction valued between $2.6 and $3.0 billion.
“Invited has spent nearly 70 years redefining the private club industry, building premier clubs that are rooted in their local communities, connected through a scaled network and united by a deep commitment to membership experience,” said Michael Mohapp, partner at KSL. “We have a deep appreciation for the strength of Invited’s platform and the important role its clubs play in the lives of members and communities.”
Mohapp said KSL will work alongside the Invited team and make continued investment in the portfolio. David Pillsbury, who took over as CEO in 2018 soon after Apollo acquired the company, will remain in that role.
Invited is the largest owner and operator of private clubs in the United States, with a portfolio of more than 150 golf and country clubs, city and business clubs and lifestyle-oriented venues. At one point, it owned roughly 170 clubs but paired back while making significant investments to upgrade existing clubs. Pillsbury said Invited now expects to become a more active buyer.
“The company was certainly worth a lot more today than it was 10 years ago,” Pillsbury said. “The best days for Invited are ahead of us and the private club business is exceptional.”
Apollo acquired the company in 2017 for an estimated $2.2 billion.
This is the second time KSL has owned Invited. It acquired the company in 2006 and took it public in 2013.
“This [acquisition] bodes very well for the golf industry,” Pillsbury said. “KSL knows this company and the business. It should give great confidence that a company this smart and sophisticated has bought the company back.”
KSL also owns a majority stake in Heritage Golf, which it acquired in 2020 and appointed Mark Burnett, a former ClubCorp executive, to lead. Heritage has grown from six clubs to 47 properties since then. Pillsbury said Invited and Heritage will operate independently, though there may be some collaboration in areas such as membership benefits.
Invited was founded in 1957 by Bob Dedman as ClubCorp. Dedman grew the company from single private club into a portfolio of more than 170 properties before passing away in 2002. In 2006, the Dedman family sold the company to KSL Capital Partners while retaining ownership of Pinehurst Resort. The combined portfolio was estimated at more than $1 billion.
KSL took ClubCorp public in 2013, raising $252 million while retaining a majority stake. The company was valued at $880 million at the time. Although ClubCorp performed well as a public company, it faced pressure from activist investors who believed it would be more valuable if broken up.
After four years, Apollo Global Management acquired all outstanding shares and took it private again. Apollo paid $1.1 billion, or 30.7% more than ClubCorp’s closing stock price in 2017. The transaction also included the assumption of $1.1 billion in debt, bringing the total transaction to $2.2 billion.
“We are proud to have supported Invited as a long-term partner, working closely with the outstanding management team to execute a shared vision for the business,” said Daniel Cohen, partner at Apollo. “Under Apollo fund ownership, Invited has made meaningful investments to transform into a leading lifestyle and leisure platform, while thoughtfully refining its portfolio and enhancing the member experience.”
Cohen said the transaction reflects the strength of the business.
Pillsbury said that while taking the company public again will always be an option, management is not currently focused on an IPO. Instead, the emphasis is on building a long-term growth plan.
“We have spent decades continuously reinvesting in our clubs and expanding the ways members can connect, play and belong, and we have never been more excited about the opportunities ahead,” he said.
Pillsbury added that Invited will explore ways to leverage KSL’s broader hospitality portfolio to deliver additional value to members, noting that consumers continue to demonstrate a willingness to pay for high-quality experiences and service.
“Our members are at the heart of everything we do at Invited, and the engagement and enthusiasm across our 150-plus clubs are a testament to the strength of what this team has built,” Pillsbury said.
Jordan Spieth, three-time major champion, will continue as an investor with KSL and Invited.
“Invited has been part of my life since I was a kid learning the game at Brookhaven Country Club, so it’s especially meaningful to be involved as an investor,” he said in a statement. “KSL understands the power of exceptional hospitality and long-term investment, and I believe their partnership will help accelerate Invited’s vision.”
