The legendary dancer Arthur Murray died more than three decades ago, but his name remains synonymous with ballroom dancing and dance instruction.
Clarion Capital Partners, a private equity/structured credit firm, recently acquired a controlling stake in Arthur Murray International, the global franchisor of dance studios, in partnership with renowned ballroom dancer Gary Edwards who assumed the role of CEO of Arthur Murray.
Terms of the transaction were not disclosed.
Edwards will eventually acquire a stake in Arthur Murray, said Eric Kogan, a partner at Clarion.
Kogan said as an investment theme, Arthur Murray falls under the categories of both “health and wellness” as well as “media and entertainment.”
“It is a growing business and they teach not only ballroom dancing, but also such diverse dance styles as merengue, salsa and others,” he said. The company currently boasts some 300 dance studios around the world, with more planned.
Kogan estimated that some 25% to 30% of students at Arthur Murray studios want to learn how to dance for their weddings, suggesting many clients are in their late 20s and 30s.
Kogan also noted that in 2023, more than 26 million people in the U.S alone participated in formal dance lessons, a 22% surge over the prior decade.
As CEO, Edwards succeeded the late Philip S. Masters, who had owned Arthur Murray for more than 60 years and grew the company into a global franchise. While the name Arthur Murray may not be familiar to most young people, Kogan nonetheless said that based on market research his firm has done, the name is the gold standard in the world of ballroom dancing.
Clarion’s portfolio also includes diverse firms such as Eco Style, a manufacturer and marketer of multicultural hair care products; Imax, the entertainment technology company; and The Oceanaire, which owns and operates seafood restaurants.
