TDR Capital has raised €4.2 billion for a new buyout fund that will focus on both new deals and bolt-on acquisitions for its existing portfolio of consumer-related companies, according to a report by Bloomberg.
TDR Capital has raised €4.2 billion for a new buyout fund that will focus on both new deals and bolt-on acquisitions for its existing portfolio of consumer-related companies, according to a report by Bloomberg.
The report cites an unnamed source as revealing that the British private equity firm’s new fund may reach its €4.5 billion hard cap in the coming months.
TDR already has significant exposure to the retail and consumer sectors, having been behind some of the UK’s highest profile buyouts. Its list of past debt-financed investments include gym owner David Lloyd Leisure Ltd, supermarket Asda Group Ltd, and Norwegian cruise line Hurtigruten Group AS. The report says a significant proportion of those bonds are now trading near or in distressed territory because of the global sell off prompted by soaring inflation and rising interest rates.
Hurtigruten has already entered into discussions with creditors despite TDR providing additional financing of €170 million over the past 14 months, while the cost of insuring Asda’s junk debt spiked to its highest on record following Kwasi Kwarteng’s disastrous mini-budget.
