PE Deals

TDC and KKR enter new capital partnership

The firm will invest in TDC through KKR ABFP and other managed credit funds.

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  • KKR ABFP and associated funds will acquire a share in TDC
  • Toscafund Asset Management will cease to be an investor and partner in TDC
  • KKR’s Anirban Ghosh and Ian Anderson will join the strategic board of TDC along with new chairman Alan Burke

TDC has entered a new capital partnership with KKR, which is investing in the company via its Asset-based Finance Partners fund (KKR ABFP) and other managed credit funds.

Manchester-based TDC is a private credit fund that offers flexible debt capital to UK lower mid-market corporates. The firm has raised more than £1 billion ($1.24 billion; €1.14 billion) of capital across five funds and invested over £500 million across over 40 investments.

Through this partnership, TDC will get significant funding to widen its sourcing of debt transactions with lower mid-market companies in the UK.

The new capital will focus on deals sponsored by private equity, providing debt capital to fund buyouts, acquisitions and refinancing.

Further, KKR ABFP and associated funds are acquiring a share in TDC to support the implementation of a business plan that aims to build a £3 billion platform over the next five years.

Additionally, Toscafund Asset Management will cease to be an investor and partner in TDC, and the firm will rebrand to TDC to reflect this transition.

“While economic conditions are challenging and debt availability is tightening, we are still seeing a strong flow of private equity deals,” said Gary Davison, founder, and managing partner of TDC. “We believe the new investment will place us in a great position to gain market share and show we are a committed funding partner for ambitious companies and private equity sponsors operating in the lower mid-market.”

The partnership will further support TDC’s growth and will raise the total capital available for its strategies to £1 billion, including the recently raised Impact Fund, which aims to encourage business expansion and job creation in the north of England.

KKR’s Anirban Ghosh and Ian Anderson will join the strategic board of TDC, together with Alan Burke, who is the new chairman and former co-head of KKR’s credit business.

KKR is a New York-headquartered global investment company that manages multiple alternative asset classes.