Apollo's Strategic Exit from Invited: A $3B+ Opportunity in the Private Club Sector

The private membership club sector has emerged as a compelling arena for strategic capital deployment, with Apollo Global Management's potential exit from its rebranded asset Invited-formerly ClubCorp-highlighting the sector's growing appeal. As Apollo weighs a sale or IPO for the operator of over 200 U.S. clubs, including iconic properties like The Metropolitan Club in Chicago and Firestone Country Club in Ohio according to sources, the $3 billion-plus valuation target reflects a confluence of industry tailwinds, operational repositioning, and macroeconomic dynamics. This analysis examines the valuation rationale, market trends, and strategic implications of Apollo's exit, contextualized within the broader private club sector's evolution.

Market Dynamics: A Sector on the Rise

The private club industry is experiencing a renaissance driven by demographic shifts, technological integration, and a renewed focus on experiential value. According to a report by Club Director, the U.S. private club sector contributed $157 billion in revenue in 2025 and supports 1.5 million jobs. The global private club membership market, valued at $31.2 billion in 2024, is projected to grow at a compound annual rate of 6.1% to reach $52.8 billion by 2033. This expansion is fueled by rising disposable incomes, a shift toward family-centric and wellness-focused amenities, and the sector's ability to adapt to hybrid work-life models.

Notably, the golf and country club segment has seen a 30% surge in participation since 2016, with industry revenue hitting $34.9 billion in 2025. Clubs are also leveraging artificial intelligence and data analytics to enhance member retention and operational efficiency. These trends underscore the sector's resilience, even as challenges like labor shortages persist.

Valuation Benchmarks: EBITDA Multiples and Comparable Transactions

The valuation of private clubs hinges on metrics such as EBITDA multiples, revenue growth, and asset quality. While the arts, entertainment, and recreation sector-into which private clubs are often categorized-carried a median EBITDA multiple of 3.0x in Q1 2025, private equity buyers have historically paid higher premiums. For instance, private equity-led deals in the U.S. during Q3 2025 averaged 12.8x EV/EBITDA, compared to 9.9x for corporate buyers. This premium reflects the sector's recurring revenue streams and the strategic value of high-quality real estate assets.

Invited's potential $3 billion valuation (including debt) implies a significant multiple expansion from Apollo's 2017 acquisition price of $2.2 billion. To contextualize this, the average sale price of U.S. golf courses surged 38% in 2024 to $6.87 million, while private clubs reported a 34% increase in total income per member between FY 2021 and FY 2023. These figures suggest that Invited's scale-operating over 200 clubs-and its rebranding efforts have enhanced its asset value, aligning with broader industry trends.

Strategic Considerations: Exit Options and Market Conditions

Apollo's decision to explore a sale or IPO for Invited is influenced by favorable market conditions. M&A activity in 2025 has surged, with global deal values rising 146.5% year-over-year in October 2025, driven by regulatory optimism and rate-cut expectations. The involvement of JPMorgan and Wells Fargo as advisors signals confidence in structuring a competitive process.

However, the exit's success will depend on aligning with buyer priorities. For strategic acquirers, Invited's portfolio offers geographic diversification and premium brand equity. For financial buyers, the company's stable cash flows and asset-light model (with clubs often operating on long-term leases) present attractive risk-adjusted returns. The sector's EBITDA margins, bolstered by rising dues (up 25% post-pandemic) and food-and-beverage sales (contributing 27.5% of total income per member), further enhance its appeal.

Challenges and Risks

Despite the sector's strengths, risks remain. Labor shortages continue to pressure operational efficiency, and the valuation gap between private equity buyers and corporate acquirers (12.8x vs. 9.9x EV/EBITDA) could complicate deal terms. Additionally, the broader private market faces valuation compression in late 2025, with exit values declining 40% from Q1 levels. Apollo's timing will be critical in navigating these dynamics.

Conclusion: A $3B+ Opportunity in a Transformed Sector

Apollo's strategic exit from Invited encapsulates the private club sector's transformation into a high-growth, capital-efficient asset class. With industry revenue projected to grow at 6.1% annually and EBITDA multiples for private equity-led deals remaining elevated, the $3 billion-plus valuation target appears justified. As the company navigates a competitive exit process, its success will hinge on leveraging its operational scale, brand repositioning, and alignment with macroeconomic trends. For investors, the transaction offers a window into the sector's enduring appeal-a blend of discretionary spending power, real estate value, and the timeless allure of exclusivity.