CVC Secondary Partners backs TDR’s investment in David Lloyd

Leading investors back next growth phase of David Lloyd

TDR Capital LLP (“TDR”), a leading UK-based private equity firm, is pleased to announce the successful closing of a newly formed continuation vehicle (“TDR Capital Titan”) which has been formed to acquire majority control of David Lloyd Leisure (“David Lloyd”), Europe’s largest operator of premium racquets, health and fitness clubs, from TDR Capital III and its co-investors (“TDR III”).

TDR Capital Titan will look to build on the success of TDR III and to continue the company’s ambitious growth plans. It also enables TDR III investors to realise their investment in a high-quality, well-performing asset, and provides new investors with the opportunity to invest behind David Lloyd and its future expansion.

TDR Capital Titan has been backed by a range of leading investors and asset managers, including the Children’s Investment Fund Foundation (acting by its investment manager, TCI Fund Management), investment funds managed by Coller Capital, Apollo’s Sponsor and Secondary Solutions (S3) business, CVC Secondary Partners and Hollyport Capital.  

TDR believes that the high quality of this new investor base demonstrates the attractive nature of the opportunity and the belief in David Lloyd’s excellent performance and growth prospects. TDR Capital Titan and its co-investors have set aside over £100m of additional capital to invest in the business and support its ongoing expansion. David Lloyd currently has a strong pipeline of future club openings across Europe and the UK and continues to roll out its premium spa and wellness offering and build additional padel courts to attract new members.

Completion of the acquisition by TDR Capital Titan, which is subject to customary conditions, is expected to take place in October 2025.

Russell Barnes, CEO David Lloyd Leisure, said: “We are delighted to have TDR’s continued backing as we enter our next phase of growth. Coming off the back of our strongest year yet – both in terms of membership numbers and the performance of the business – we continue to see huge opportunities for David Lloyd across Europe and in the UK. Our focus will remain on investing in premium site features, including spas and facilities for fast-growing sports like padel, where we are the UK’s leading operator. These investments are driving improved customer satisfaction levels and record numbers of members choosing premium packages, and we are confident that this strategy will continue to deliver results.”

Tom Mitchell, Managing Partner at TDR Capital, said: “David Lloyd has been a highly successful investment for TDR to date, achieving significant growth and operational transformation over the first period of our ownership. We remain excited by the opportunities ahead for the business which are supported by growing consumer demand for premium wellness services. We saw significant investor interest in TDR Capital Titan and look forward to working with our new partners to support David Lloyd’s next stage of growth. The transaction has allowed our current investors the option for a full exit, and we are very pleased to be continuing our work with Glenn, Russell and the wider David Lloyd team.”

Since acquiring David Lloyd in November 2013, TDR III has worked in partnership with the company’s management team to transform the business, delivering sustained growth and improved customer experience. Since 2013, David Lloyd has nearly doubled the number of clubs, opening over 40 new locations in the UK and 30 across Europe, tripled the number of employees to 11,600 and nearly doubled membership numbers to over 800,000.

Jefferies acted as sole financial advisor to TDR on the transaction and Kirkland & Ellis LLP acted as legal adviser in relation to the transaction and the establishment of TDR Capital Titan.

Morgan Stanley & Co. International Plc acted as financial adviser to David Lloyd and Travers Smith advised David Lloyd management in relation to the transaction.