- Case Study
"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’’
RICK STOLLMEYER CO-FOUNDER AND FORMER CEO, MINDBODY, INC
Mindbody's Growth Story
Mindbody Inc. is the global market leader for business management software in the fitness and wellness industry (including yoga, pilates and group fitness) with c.25% market share.
Their ability to couple recurring SMB software with payments revenue and a consumer facing marketplace, would give Mindbody all the attributes to become the long-term dominant market player.
Mindbody was opportunistically acquired in December 2018 by Vista Equity Partners for US$1.9b, a 68% premium to the prior day’s closing share price and the second highest 1-day premium paid in a SaaS transaction. This represented a 3x growth in market capitalisation since TDM first invested in 2016.
Our Ownership
At the time of TDM’s investment in 2016, Mindbody had only 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.
Given our investment experience in vertical SaaS companies, we understood the scaling journey that Mindbody was embarking on, both strategically and operationally.
At peak, TDM owned just over 5% of the business and as long-term supportive shareholders, we had frequent, open and productive communication with the company.
Mindbody’s management team greatly appreciated our unwavering support as owners, particularly through times of wild market volatility and investor scepticism around their ability to execute on their long-term strategic vision.
