TDR Capital is nearing a €1 billion first close as it attempts to raise €2 billion for its third buyout fund, according to a source.
The UK-based firm started fundraising in December last year. It is understood TDR put in a 10 percent GP commitment. Three quarters of investors have so far re-upped.
TDR declined to comment on fundraising.
The firm, which was founded in 2002, has approximately €2.6 billion under management. It focuses on leveraged buyouts in Western Europe with enterprise values between €150 million to €750 million.
TDR’s first fund closed in 2003 on approximately €500 million, according to PEI’s Research and Analytics division. This fund has returned 2.1x to date, with an internal rate of return of over 65 percent, according to the firm’s website.
TDR Capital II, a €2.2 billion 2007 vintage which is fully invested, is currently valued at 1.7x, the source added. Some of the investors in Fund II include Swift Capital Partners, Graphite Capital and Heliad Equity Partners, according to PEI’s Research and Analytics division.