What we do
Our investment strategy is encapsulated in one clear objective: to deliver superior risk-adjusted returns to our investors. To achieve this, we focus on three core principles: pursuing independent, thematic and long-term origination; transforming undermanaged, underinvested and unloved businesses; and having a rigorous focus on capital preservation.
Since TDR Capital was founded in 2002 by Manjit Dale and Stephen Robertson, the firm has been creating value by applying a high impact approach to investing in a focused portfolio of companies. We drive returns by combining ambitious operational plans for our businesses with a rigorous focus on capital preservation.
This strategy has resulted in a track record of consistent, superior returns and EBITDA growth across our portfolio.
We currently manage over €5 billion of committed capital across three European mid-market buyout funds. Please see Investor relations for further information on our funds and investors.
We seek to buy under-managed, under-invested or misunderstood companies which may be transformed through greater strategic and operational focus where other potential investors may have overlooked value or applied a different assessment of risk. We employ a proactive and theme-driven approach to sourcing investment opportunities, based on a firm culture which favours independent and evidence-based thinking. As a result, we typically originate investment opportunities outside the traditional sources of private equity deal flow.
We are patient in sourcing new investments and are willing to spend significant time and resources in building conviction around an investment case. This means our investment teams will have a clear and detailed plan for a business before acquiring it.
There are many examples where our view of an asset has been substantially different from the market, as exemplified with assets such as Stonegate Pub Company, David Lloyd Clubs, Lowell Group and Phoenix Group.
Operational transformation and driving upside
A key determinant of our returns and the attractiveness of an investment opportunity to us is the potential we identify to proactively transform the business through operational improvement, high-returning capital investment and accretive buy-and-build strategies.
The resources dedicated to each investment together with the scale and experience of our Operating Partner team allows us to identify and intensively execute on value creation opportunities. We focus on companies which are undermanaged and/or underinvested and where we believe value has been overlooked or risk misdiagnosed, and where the team’s skill-set and access to capital can directly impact the operations of that business.
We then seek to transform our portfolio companies, typically through a combination of:
- Major operational improvements, where our Operating Partners drive changes deep inside portfolio companies together with management
- High-returning capital investment, in underinvested businesses, for example by acquiring new assets or refurbishing existing assets
- Accretive buy-and-build strategies, transforming an initial platform investment by taking advantage of synergy value through in-fill M&A, driving industry consolidation, and executing strategic acquisitions to deliver a step change in a company’s competitive position
Using these levers and applying significant deal team resource helps drive significant EBITDA growth and value creation across the portfolio.
We have a rigorous focus on capital protection. We spend significant amounts of time looking at how we can positively affect the distribution of returns on our investments. We often invest in companies that offer significant opportunities to de-risk the investment quickly, for example:
- By deploying our extensive operating expertise to bring about early operational wins
- Through investing in companies with significant asset backing, for example with long-term visible cash flow streams or tangible assets
- By investing at low entry multiples and/or with value accretive buy-and-build