Osterweis Fund Flags Life Time Group's Plan to Grow to 400-500 Gyms From 190

Insider Monkey··US·Read original
2▲1 ▼0Impact / 5
Summary · why it matters

Osterweis Opportunity Fund highlighted Life Time Group Holdings in its second-quarter 2026 investor letter, pointing to the fitness chain's long-term opportunity of 400-500 gyms nationwide, up from 190 today. The fund said Life Time has consistently beaten and raised estimates over the year and a half it has owned the stock, but that a private equity overhang had been holding the shares back. When the company reported first-quarter earnings, it announced an agreement with Atairos to purchase shares from private equity holders Leonard Green and TPG, and the PE holders then sold another block the next day, cutting their combined position to under 10%. Osterweis said it believes fears of that secondary overhang are now behind the company. Life Time, headquartered in Chanhassen, Minnesota, closed at $38.19 per share on September 22, 2026, down 16.83% over the past month but up 28.94% over the past year, with a market capitalization of $8.53 billion and a 52-week range of $24.14 to $47.24. The Osterweis Opportunity Fund returned 35.34% in the quarter, outpacing the Russell 2000 Growth Index's 25.71% gain.

Impact on assets 2

Consumer Discretionary▲ · 1 stocks
Life Time Group Holdings Inc
LTH
▲ PositiveCapitalrelevance

Osterweis flags Life Time's 400-500 gym growth opportunity and says the private-equity secondary overhang that held shares back is now behind it after the Atairos share purchase.

Financials▲ · 1 stocks
TPG Inc
TPG
± MixedCapitalrelevance

TPG is named as a private equity holder selling down its Life Time stake to under 10% combined with Leonard Green, a secondary sale rather than a company-specific development.

Off-coverage companies 2

AtairosPrivate± Mixed
Capitalrelevance

Atairos agreed to purchase Life Time shares from Leonard Green and TPG, a transaction mentioned as context for the PE overhang.

Leonard Green & PartnersPrivate± Mixed
Capitalrelevance

Leonard Green is named as a private equity holder selling down its Life Time position alongside TPG.

© 2026 MarketIVNews