“Russian Fitness Group” was headed by a manager from Mubadala

The Russian Fitness Group (RFG), which manages World Class fitness clubs, is changing its management. Nikolai Pryanishnikov, who has headed the company since 2015, will take on other projects, and Alexander Solodovnikov, who works for the investment company Mubadala, which owns a stake in the Russian Federation, has been appointed general director. This co-owner can thus strengthen control over the network, experts say.

Alexander Solodovnikov was appointed general director of the RFG, which manages the World Class and UFC GYM Russia fitness club chains, instead of Nikolai Pryanishnikov, Kommersant was told in the RFG. Mr. Pryanishnikov has headed the RFG since 2015, and was previously vice president of Microsoft in Central and Eastern Europe, head of the corporation’s representative office in the Russian Federation and top manager of VimpelCom (Beeline brand).

Nikolay Pryanishnikov, said in the RFG, will take up other projects. He himself told Kommersant that he decided to “start a new stage of his career,” adding that he was “satisfied with the results of his work at World Class.” For now, he said, he will focus on serving on the boards of three companies and is also considering leadership offers from two technology companies.

Alexander Solodovnikov, the RFG clarified, has experience working in investment structures, and for the last three years he has participated in the work of World Class as a member of the board of directors. As stated in Mr. Solodovnikov’s LinkedIn profile, since 2021 he has been working for the Mubadala investment company from Abu Dhabi, which in 2018, together with the Russian Direct Investment Fund (RDIF), bought 22.5% of RFG from VTB Capital. The terms of the contract with the new general director in the Russian Federation are not disclosed. Kommersant’s interlocutor in the fitness services market estimates the salary of a top manager of a large chain at more than 1 million rubles. per month with bonuses for improving performance.

Alexander Solodovnikov, in turn, said that he will continue to work “on the development of the product offer” and will implement solutions that should improve interaction with club members. RFG President Olga Slutsker noted that his experience as an investor, analyst and competence in digital technologies is combined with knowledge of the fitness industry.

RFG, according to its own data, includes 117 fitness clubs, including those operating as franchises, in Russia, Kazakhstan, Azerbaijan, Kyrgyzstan, Georgia and other countries. In 2022, the revenue of the operating company of the group, Sport Forum LLC, increased by 12.2%, to 10 billion rubles, net profit was 35.7 million rubles.

According to the Unified State Register of Legal Entities, Sport Forum is owned by Cypriot Glacialis Trade & Invest Ltd. and Gravesco Investments Ltd., whose beneficiaries are unknown. In November 2018, Kommersant wrote that about 30% of the Russian Federation is controlled by Olga Slutsker, 20% by Maxim Ignatiev, 24.9% by Goldman Sachs. The latter, according to a Kommersant source in the market, exited the asset several years ago, selling the share to Mubadala and partners, who now have about 50%. Mubadala, RDIF and Goldman Sachs did not respond to Kommersant. RFG does not disclose the ownership structure.

Managing Director of Peregrine Capital Dmitry Gabyshev doubts that Mubadala will increase investments in Russia in the current conditions, and believes that the appointment may indicate the company’s desire to dive deeper into the business and determine a strategy for the asset. Among the possible options, Mr. Gabyshev names bringing RFG to an IPO and attracting an investor. Managing partner of Transearch International Stanislav Alekseev notes that the arrival of a member of a team of shareholders to the post of general director may indicate their desire to strengthen control over the business.

President of the Association of Fitness Industry Operators Olga Kiseleva, citing FitnessData, predicts an increase in the turnover of the fitness services market in 2024 by 16–17%, to 250 billion rubles. According to her, investors expect further growth, but demand depends on macroeconomic and political factors. The head of the National Fitness Community, Elena Silina, adds that business profitability has decreased from 15–20% to 7% since 2019, and the recovery of club income is hampered by rising prices for equipment, materials and borrowed funds.

Anatoly Kostyrev, Alexandra Mertsalova