TDR Capital has taken on fresh investment and created a new fund for David Lloyd Leisure in a deal which values the company at around £2 billion.

TDR took control of David Lloyd Leisure in 2013 from London & Regional and Caird Capital LLP for £750 million. Since then the health and racquets company has almost doubled the number of its clubs, with more than 40 new locations in the UK and 30 across Europe and nearly doubled membership numbers to more than 800,000.

TDR has made several attempts to exit its ownership but has not got a suitable deal over the line, so the new arrangement allows TDR III investors to realise their investment and gives new investors the opportunity to get involved in the company’s future expansion.

More than £100 million will be allocated to support David Lloyd Leisure’s growth and the operators has a strong pipeline in the UK and Europe.

The new TDR Capital Titan fund has five main investors: Children’s Investment Fund Foundation, Coller Capital, Apollo’s Sponsor and Secondary Solutions (S3), CVC Secondary Partners and Hollyport Capital.

David Lloyd Leisure CEO, Russell Barnes, says: “We're 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 such as 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 this strategy will continue to deliver results.”

Tom Mitchell, managing partner at TDR Capital, says: “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.

Barnes will be among the stellar line-up speaking at the HCM Summit at London’s Queen Elizabeth II Centre, on 23 October. The all-keynote event also includes Urban Gym Group CEO, Neil Randall; group COO at PureGym, Rebecca Passmore; Life Fit Group CEO, Martin Seibold and CEO and MD of the Fitness and Lifestyle Group, Greg Oliver. The event will be chaired by Humphrey Cobbold, chair of PureGym.

You can book tickets now.