TDR holds €900m first close for third fund

Ellie Pullen
02 August 2013

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TDR Capital has held the first close of its third fund, TDR III, on approximately €900m after starting the fundraising process in December last year.

The firm hopes to raise €2bn by the end of this year, said a source close to the situation. The vehicle will follow in the footsteps of its predecessor, TDR Capital II, which closed in July 2006 on €1.75bn.

The fund is said to have a typical lifespan, although the holding period will be longer and the firm tends to invest in only a few companies a year, to remain in keeping with its buy-and-build strategy.

Representatives for TDR declined to comment.

Investors
TDR III's LP base is similar to its predecessor's, with the majority of LPs being returning investors. However, a small number of new LPs are believed to have contributed to the fund, due to the firm having to seek further afield in the aim of raising its target amount.

According to unquote" data, TDR II saw private pension plans commit for a quarter of the overall capital raised, as well as endowment funds contributing 20% and the rest being provided by funds-of-funds, corporations and insurance companies.

Investments
The vehicle will focus on a buy-and-build strategy, investing in only one or two small European companies per year, with no preference for a particular country. The firm tends to invest in the leisure and business sectors and is believed to be focusing on companies with an enterprise value of £150m–700m.

People
Partners Manjit Dale and Stephen Robertson managed the firm's previous fund, TDR II. However, this fund is said to be more of a collective effort on behalf of the firm, with no specific team member acting as sole fund manager.