TDR Capital LLP, a London-based private-equity firm started with backing from hedge-fund manager Paul Tudor Jones, may seek 1.75 billion euros ($2.2 billion) for its third European fund, according to two people with knowledge of its plans.
The firm expects to start marketing TDR Capital III in the second half, said the people, who asked not to be named because the information is private. Blair Thompson, a partner at the firm, declined to comment.
TDR Capital, which last year hired David Melvin, the former co-head of the global financial sponsors group at Bank of America Merrill Lynch, will compete with European firms such as CVC Capital Partners Ltd. and Nordic Capital that also are raising money. CVC may seek as much as 10.75 billion euros for its next European fund, two people briefed on the matter said this month. Nordic Capital is targeting 4 billion euros, Cinven Ltd. is seeking 5 billion euros and Permira Advisers LLP 6.5 billion euros for new funds.
TDR Capital invests in businesses with significant operations in Western Europe. Last year it bought U.K.-based Lowell Group, which buys nonperforming consumer debt, and purchased a portfolio of U.K. pubs to form Stonegate Pub Co. in 2010.
The prior fund, TDR Capital II, raised 2.2 billion euros in 2006. The fund included 1.75 billion euros from institutional investors and a friends-and-family pool, according to one of the people.
Manjit Dale and Stephen Robertson left the European private-equity arm of Deutsche Bank AG in 2002 to start TDR Capital, securing backing from Jones’s Tudor Investment Corp. The firm raised 500 million euros for its debut fund, TDR Capital I, in 2003. That fund has generated a 2.1 times multiple on invested capital and an internal rate of return of more than 65 percent, according to the firm’s website.
Probitas Partners LLC is the placement agent for the new fund.
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