SCHEDULE: Leonard Green & Partners Reduces Life Time Group Stake

Leonard Green & Partners and affiliates sold nearly 5 million shares of Life Time Group Holdings, reducing their beneficial ownership to 11.3%.

Summary

• Green LTF Holdings II LP, Green Equity Investors VI, L.P., Green Equity Investors Side VI, L.P., LGP Associates VI-A LLC, LGP Associates VI-B LLC, GEI Capital VI, LLC, Green VI Holdings, LLC, Leonard Green & Partners, L.P., LGP Management, Inc., and Peridot Coinvest Manager LLC (collectively, the "Reporting Persons") filed Amendment No. 5 to their Schedule 13D.
• On September 11, 2025, the Reporting Persons sold a total of 4,991,976 shares of Life Time Group Holdings, Inc. common stock.
• The shares were sold at a price of $28.95 per share pursuant to Rule 144 under the Securities Act of 1933.
• Specifically, Green LTF sold 4,900,945 shares, Associates VI-A sold 8,301 shares, and Associates VI-B sold 82,730 shares.
• Following the transaction, the Reporting Persons collectively beneficially own 24,906,061 shares of Common Stock, representing approximately 11.3% of the issued and outstanding shares.
• This ownership percentage is based on 219,996,102 shares of Common Stock outstanding as of July 31, 2025, as reported by the Issuer in its Form 10-Q.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to a significant institutional investor reducing its stake, which can be interpreted as a decrease in conviction or a move to realize gains. However, it's a routine part of private equity investment cycles and not necessarily indicative of fundamental issues with the company.

Negatives

• A significant institutional investor, Leonard Green & Partners and its affiliates, reduced their stake in Life Time Group Holdings, Inc. by nearly 5 million shares, which could be perceived as a decrease in confidence or a portfolio rebalancing.

Risks

• The reduction in ownership by a major institutional investor could lead to negative market sentiment or increased selling pressure on the stock.
• The sale of a large block of shares could impact the stock's liquidity and price stability in the short term.

Future Outlook

NA

Industry Context

This filing primarily reflects a change in institutional ownership rather than a direct operational or strategic update from Life Time Group Holdings. Large block sales by private equity firms are common as they monetize their investments, but the timing and scale can sometimes signal broader market or company-specific views. The health and fitness industry, in which Life Time Group operates, continues to navigate post-pandemic trends, and investor sentiment can be influenced by macroeconomic conditions and consumer spending habits.

Stakeholder Impact

• Shareholders: The sale by a major institutional investor could lead to increased supply of shares in the market, potentially impacting the stock price. It may also influence other investors' perceptions of the company's value or future prospects.
• Company Management: While not directly impacting operations, a reduction in a significant shareholder's stake might prompt management to engage with the remaining institutional investors to understand their perspectives and maintain confidence.

Key Dates

Recommendation

The filing indicates a significant reduction in ownership by a major institutional investor, Leonard Green & Partners. While this is a common practice for private equity firms to monetize their investments, a large block sale can create short-term selling pressure and may be perceived negatively by the market. Without additional fundamental information on Life Time Group Holdings' performance or strategic outlook, a 'hold' recommendation is prudent. Investors should monitor the stock's reaction to this news and evaluate the company's upcoming financial reports for a clearer picture of its intrinsic value and future prospects, considering if this sale is purely a portfolio rebalancing or signals deeper concerns.

Keywords

Life Time Group Holdings, Leonard Green & Partners, Schedule 13D/A, Beneficial Ownership, Share Sale, Institutional Investor, Common Stock, LTF