A New York-based private equity firm is getting into the coworking industry with its latest purchase.

New State Capital Partners announced its acquisition of Vast Coworking Group from its former parent company, United Franchise Group. Deal terms weren’t disclosed in a press release Tuesday.

Through its brands Venture X, Office Evolution and Intelligent Office, Vast has more than 200 coworking locations in the U.S. and overseas. Those locations total approximately 2.7M SF and boast around 70,000 members.

The company uses a franchise model that New State senior principal Daniel Han said has been very successful in the sector.

“We see compelling long-term growth trends in the coworking market, with significant opportunity for continued expansion,” Han said in a statement. “Together, we see a clear path to drive value by accelerating strategic unit growth, enhancing franchisee support, and strengthening the member experience.”

After the coworking industry grew throughout much of the country in 2024, that expansion has slowed and shifted focus to scaling efficiently and in proven markets, according to a fourth-quarter CoworkingCafe report. The U.S. coworking market grew by 5% quarter-over-quarter and added more than 7M SF during the final quarter of 2025.

The New State acquisition will help grow Vast’s coworking platform while strengthening its franchise system, co-founder Jason Anderson said.

The deal is New State's second platform investment in Fund IV, following its majority investment in Harrell-Fish Inc. in December. Morgan, Lewis & Bockius LLP advised New State in the Vast transaction, while United Franchise Group was advised by Ice Miller LLP and Boxwood Partners.

The national return-to-office push has provided a major tailwind for the coworking market, as many companies have reduced their real estate footprints and embraced a hybrid approach.

That has helped Dallas-Fort Worth’s coworking market remain near the top of the list of most spaces in the country. The region added 13 new spaces during the fourth quarter but fell from No. 2 in the nation to third, behind Chicago.

Los Angeles leads the nation with nearly 340 coworking spaces, while Manhattan boasts the most square footage in the U.S., according to CoworkingCafe.

While New State sees growth on the horizon for Vast, other coworking companies have dealt with financial difficulties in recent years.

Convene Hospitality Group acquired the entertainment industry coworking club NeueHouse out of bankruptcy in January. The members-only coworking and social club abruptly shuttered all locations in September and filed for Chapter 7 bankruptcy.

WeWork filed for Chapter 11 bankruptcy in late 2023 but emerged from the restructuring the following year and returned to profitability last summer, with plans for further growth.