TDR Capital, the private equity firm that owns David Lloyd, the high-end health club, spa and wellness and sports operator, is considering moving the business within its portfolio by transferring its stake from one of its funds to another while also bringing in new investors.

The private equity giant has been looking for a buyer for the business for a couple of years, with prospectuses being produced indicating a desired deal of around the £2 billion mark. The company, which is trading well, has debt of around £1 billion.

The absence of a suitable buyer has prompted TDR to look for alternative ways to move the business on and the FT reports it has hired US investment banking firm Jefferies to explore options – such as the fund transfer – that could value David Lloyd at between £1.8bn and £2.3bn.

TDR paid £750k for the business when it bought it from London and Regional Properties and Caird Capital in 2013, but its exit has been delayed by the pandemic.

Industry analysts say the lack of a sale could be in part due to over-bullish UK growth forecasts, however, David Lloyd has pressed on with a steady stream of openings and acquisitions, has had a very successful and profitable foray into the spa and wellness market and is well-placed as one of the top operators in the UK at a time when premium offerings are in-demand due to the growth of the luxury market.