Case Study


The booking and management software behind your favourite yoga studio.

"TDM is exceptional in the depth of their research, the consistency of their long-term focus, and the quality of their relationships. We enjoyed our many interactions with them and learned a great deal from their insights’’


Mindbody Inc is the global market leader for cloud-based business management software for the fitness industry (including yoga, pilates and group fitness) with c.25% market share.

At the time of TDM’s investment in 2016, Mindbody had only just recently become a public company and was facing some investor headwinds – like many of our successful public market investments, we felt Mindbody was both misunderstood and overlooked by many investors.

Over the years of investing in vertical SaaS, we felt in a position to deeply understand the scaling playbook that MindBody was attempting to execute upon. Coupling this with our vast experiences across payments and SMB customer bases, we felt Mindbody had the attributes to become the dominant market player and what we describe as a ‘sweet spot’ TDM investment given these converging factors.

At times, TDM owned just over 5% of the business and as long-term supportive shareholders had frequent, open and productive communication with the company.


Mindbody was opportunistically purchased in December 2018 by Vista Equity Partners for US$1.9b, a 68% premium to the prior day’s closing share price – the second highest 1-day premium paid in a SaaS transaction.

This represented a 3x growth in market capitalisation since we first invested in 2016.

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People and Culture

In CEO and founder, Rick Stollmeyer, we saw a visionary founder that was solely focused on long-term value creation for shareholders. Rick deeply valued the propagation of a culture within Mindbody that would ensure it could grow quickly for a very long time. Rick was also a very large shareholder, aligning his long-term interests with ours.

The management team all greatly appreciated our unwavering support as owners, particularly through the times of wild market volatility and investor scepticism, particularly as it related to their ability to execute on their long-term strategic vision.

Competitive Advantage

Our primary framework for assessing competitive advantage is Hamilton Helmer’s 7 Powers. Find further details in our Four Pillars Framework.

 As the dominant vertical market leader, MindBody had proven operational leverage that allowed re-investment into growth initiatives like its consumer marketplace as well as M and A opportunities.

The Mindbody marketplace, connecting Mindbody SMB customers with consumers and allowing both discovery and bookings, despite still being in its infancy during our investment period proved to be a powerful network opportunity.




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