Akin Gump Strauss Hauer & Feld LLP, a global law firm, has successfully advised Apollo Global Management’s Sponsor and Secondary Solutions (S3) unit in a significant new partnership with TDR Capital Titan. This collaboration marks the creation of a continuation vehicle established by TDR Capital LLP, aimed at acquiring a majority stake in David Lloyd Leisure, the premier operator of racquets, health, and fitness clubs in Europe.

This strategic move will transfer control from TDR Capital III and its co-investors to the new entity, with the transaction set to finalize by October 2025, pending customary closing conditions. The consolidation of these investments under the TDR Capital Titan umbrella promises to usher in a dynamic growth phase for David Lloyd Leisure.

The deal has attracted a consortium of top-tier investors, including the Children’s Investment Fund Foundation, managed through TCI Fund Management, along with funds handled by Coller Capital, CVC Secondary Partners, and Hollyport Capital. They have collectively earmarked over £100 million to fuel the expansion plans of David Lloyd Leisure. These plans include launching new clubs across the UK and Europe, enhancing spa and wellness facilities, and adding more padel courts to meet growing customer demand.

Russell Barnes, CEO of David Lloyd Leisure, expressed enthusiasm about the company's prospects, citing a record-breaking year in membership growth and financial performance. "We are delighted to have TDR’s continued backing as we enter our next phase of growth," stated Barnes. He emphasized the significant potential for expansion within Europe and the UK.

Tom Mitchell, TDR Capital’s managing partner, highlighted the past success and the transformative journey of David Lloyd under TDR's initial phase of ownership. "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,” said Mitchell.

Since TDR’s initial acquisition in 2013, David Lloyd has nearly doubled its club numbers, ventured into new European markets, grown its membership base beyond 800,000, and tripled its workforce to 11,600 employees.

Advisory support for the transaction included major financial and legal experts: Jefferies and Kirkland & Ellis LLP for TDR, Morgan Stanley & Co. International Plc and Travers Smith for David Lloyd, and RBC Capital Markets along with Akin for Apollo S3.

The Akin team was spearheaded by investment management partner Fadi Samman and featured contributions from several key members, underscoring the firm’s commitment to facilitating complex, high-value transactions that drive industry growth and innovation. Akin Gump’s extensive legal expertise and strategic advisement remain pivotal in navigating the evolving landscape of global investments and asset management.