TDR Capital is nearing a £2bn continuation vehicle transaction to extend its ownership of David Lloyd Leisure, one of Europe’s largest premium health and fitness chains.

The London-based private equity firm, which has held the asset since 2013, is finalising a deal that will transfer David Lloyd from an existing fund into a new vehicle backed by many of the same investors. The continuation fund structure, increasingly popular among private equity firms, enables TDR to unlock value for existing LPs while retaining a long-term growth asset.

Sources familiar with the matter said TDR has secured strong interest for the £800m equity portion of the deal, with demand reportedly surpassing £1bn. The remaining £1.2bn will be financed through rollover debt.

Jefferies is advising on the transaction.

David Lloyd Leisure operates 134 clubs and employs more than 11,500 people. Under TDR’s ownership, the business has grown its footprint by 50%, expanding across mainland Europe and adding new wellness offerings such as spas, yoga, meditation, and tai chi.

In its most recent financial year, the group posted EBITDA of over £230m, marking a 33% increase year-on-year. Membership has now exceeded 800,000, supported by a pipeline of 30 new sites and plans to roll out over 200 Padel courts across its estate.

The deal offers existing LPs in the original TDR fund an opportunity to exit, while giving new investors access to future upside. It follows previous sale attempts that did not meet valuation expectations.

TDR Capital also holds stakes in Asda and Stonegate Group, the UK’s largest pub company.

Source: Sky News

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