CE Intermediate I, LLC

Overview Key strengths Key risks Recurring revenue-based model and high retention rates provide good revenue visibility. Elevated S&P Global Ratings-adjusted leverage of more than 10x with a history of acquisitions and share repurchases. Clubessential operates in markets that are relatively concentrated and have few competitors. The company?s business lines are individually small and operate in niche industries. A recessionary environment in the U.S. and Eurozone could pressure the company?s growth. . Partly offsetting these factors are its good customer-retention metrics, its relatively stable recurring revenue base, and its EBITDA margins that are around or slightly better than the industry average. Clubessential provides integrated software as a service (SaaS) solutions for membership-based organizations, including country clubs, social clubs, golf courses, boutique

...The rating reflects Clubessential's very high lease and preferred-share adjusted leverage, its niche focus, its small revenue and EBITDA bases compared to peers, and the integration risk inherent in its acquisitive growth strategy. Partly offsetting these factors are its good customer-retention metrics, its relatively stable recurring revenue base, and its EBITDA margins that are around or slightly better than the industry average. Clubessential provides integrated software as a service (SaaS) solutions for membership- based organizations, including country clubs, social clubs, golf courses, boutique and traditional fitness studios, government-...

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