FT News Briefing Inside the secretive private equity firm behind the £6.8bn Asda buyout
Jun 30, 2021
The UK is launching a new post-Brexit subsidy plan aimed at boosting industry. Hitachi is making bold moves in the U.S. market, anticipating significant infrastructure spending. Dive into the low-key yet powerful private equity firm TDR Capital behind the £6.8 billion Asda buyout, highlighting their innovative financial strategies. The growing influence of private equity in the UK retail scene raises eyebrows, especially concerning debt financing and traditional fund manager responses. The rise of SPACs adds an intriguing twist to the overall investment landscape.
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TDR Capital's Role
- TDR Capital, a low-profile private equity firm, orchestrated the £6.8 billion Asda buyout.
- They are known for their unique deal structures and aversion to traditional private equity practices.
TDR's Unconventional Approach
- TDR Capital operates differently than larger firms, maintaining a small team and informal approach.
- Manjit Dale, the head of TDR, avoids bureaucracy and prefers direct communication.
TDR's Deal Structure
- TDR structures deals to minimize their downside risk while maximizing potential gains.
- This strategy involves complex financial engineering and high leverage.