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PNC Mezzanine Capital recently completed a minority recapitalization of a $15 million preferred stock investment with Mountainside Fitness. PNC Mezzanine Capital and the Mountainside management team plan to continue to expand the company’s leadership position in the Arizona fitness community and beyond through continued reinvestment in existing fitness clubs, additional de novo expansion and the selective pursuit of strategic acquisitions.

Founded in Tempe, Arizona in 1991 by CEO Tom Hatten, Mountainside is the largest locally owned health club chain in the state with 17 fitness centers across the Phoenix metropolitan area. The company has over 1,300 employees and serves nearly 100,000 members.

“We are thrilled to have the unique opportunity to invest in Mountainside Fitness for a second time; and to partner with Tom Hatten and the rest of the management team lead the company into its next stage of growth. We believe our experience over the last decade investing and guiding companies in the fitness industry along with our partnership oriented approach and additional capital will allow us to provide value-added support to Mountainside moving forward,” PNC Mezzanine Capital Partner Doug Brosius said, in a statement.

Mountainside CEO Tom Hatten added that PNC’s investment helped expedite the company’s growth from 2014 to 2017

PNC Mezzanine Capital is a flexible junior capital provider with expertise financing buyouts, recapitalizations and consolidation strategies. The firm has made 172 investments in 89 portfolio companies in support of 318 transactions.