Tonal C-Suite Overhauled by PE Firm
What happened
Connected fitness company Tonal has a new CEO, Todd Bartee, who was installed by its primary investor, L Catterton. Bartee is an operating partner at the private equity firm, signaling a trend toward increased operational oversight and executive visibility in the sector.
Why it matters
- This is Tonal's third CEO appointment in under two years; Todd Bartee succeeds Darren MacDonald, who held the role for approximately 17 months, and Krystal Zell, who took over from founder Aly Orady in April 2023. - The leadership change follows a significant drop in the company's valuation, which fell from a peak of $1.6 billion in 2021 to between $550 million and $600 million during a $130 million funding round in April 2023. - L Catterton, the new CEO's firm, has been a long-term investor, leading Tonal's $45 million Series C financing in 2019 and participating in subsequent funding rounds, including a $130 million raise in 2023. - As an Operating Partner at L Catterton, Bartee was already deeply involved with Tonal's business, focusing on strategy, operations, and value creation initiatives prior to his appointment as chief executive. - Bartee's stated focus aligns with a strategic shift toward high-margin software and AI-driven personalization, as well as expanding the company's retail distribution footprint. - Before joining L Catterton, Bartee was the CEO of water filtration company Aquasana and outdoor gear brand Taxa Outdoors, giving him a track record of leading growth-stage consumer brands. - The move reflects a broader market correction in the connected fitness industry, which experienced a post-pandemic slowdown that also impacted competitors like Peloton and led to Tonal laying off 35% of its staff in July 2022 to prioritize profitability.
Key numbers
- - This is Tonal's third CEO appointment in under two years; Todd Bartee succeeds Darren MacDonald, who held the role for approximately 17 months, and Krystal Zell, who took over from founder Aly Orady in April 2023.
- The leadership change follows a significant drop in the company's valuation, which fell from a peak of $1.6 billion in 2021 to between $550 million and $600 million during a $130 million funding round in April 2023.
- L Catterton, the new CEO's firm, has been a long-term investor, leading Tonal's $45 million Series C financing in 2019 and participating in subsequent funding rounds, including a $130 million raise in 2023.
- The move reflects a broader market correction in the connected fitness industry, which experienced a post-pandemic slowdown that also impacted competitors like Peloton and led to Tonal laying off 35% of its staff in July 2022 to prioritize profitability.
Quick answers
What happened in Tonal C-Suite Overhauled by PE Firm?
Connected fitness company Tonal has a new CEO, Todd Bartee, who was installed by its primary investor, L Catterton. Bartee is an operating partner at the private equity firm, signaling a trend toward increased operational oversight and executive visibility in the sector.
Why does Tonal C-Suite Overhauled by PE Firm matter?
This is Tonal's third CEO appointment in under two years; Todd Bartee succeeds Darren MacDonald, who held the role for approximately 17 months, and Krystal Zell, who took over from founder Aly Orady in April 2023. The leadership change follows a significant drop in the company's valuation, which fell from a peak of $1.6 billion in 2021 to between $550 million and $600 million during a $130 million funding round in April 2023. L Catterton, the new CEO's firm, has been a long-term investor, leading Tonal's $45 million Series C financing in 2019 and participating in subsequent funding rounds, including a $130 million raise in 2023. As an Operating Partner at L Catterton, Bartee was already deeply involved with Tonal's business, focusing on strategy, operations, and value creation initiatives prior to his appointment as chief executive. Bartee's stated focus aligns with a strategic shift toward high-margin software and AI-driven personalization, as well as expanding the company's retail distribution footprint. Before joining L Catterton, Bartee was the CEO of water filtration company Aquasana and outdoor gear brand Taxa Outdoors, giving him a track record of leading growth-stage consumer brands. The move reflects a broader market correction in the connected fitness industry, which experienced a post-pandemic slowdown that also impacted competitors like Peloton and led to Tonal laying off 35% of its staff in July 2022 to prioritize profitability.
