Lee Equity Partners
Encyclopedia
Lee Equity Partners is a private equity
firm focused on growth capital
investments in middle-market companies across a range of industries.
The firm, which is based in New York City
, was founded in 2006 by Thomas H. Lee
, the notable private equity investor who previously founded Thomas H. Lee Partners
and also owns the Blue Star group of fund of hedge funds.
resigned from Thomas H. Lee Partners
as the firm was nearing completion of fundraising for its sixth and current private equity fund
. In the same year, Lee formed Lee Equity Partners a private equity firm
focused on the same leveraged buyout
transactions that he had been completing for nearly 35 years at THL.
Both Lee and THL insisted that move was amicable, however persistent reports suggested that Lee, who had limited his day-to-day involvement in the firm and had relocated to New York City
had been pushed out by several partners.
Among the first professionals to join Lee Equity Partners included Mark Gormley, a founding partner of Capital Z Partners; David Morrison, former president and CEO of Mercer Management Consulting and Allen Questrom, former CEO of J.C. Penney Company, Barneys New York
, Federated Department Stores
and Neiman Marcus
. The firm also brought in former investment professionals from Bain Capital
and The Carlyle Group.
Among the firm's first investments included the acquisition of Deb Shops
in 2007.
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm focused on growth capital
Growth capital
Growth capital is a type of private equity investment, most often a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business.Companies...
investments in middle-market companies across a range of industries.
The firm, which is based in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, was founded in 2006 by Thomas H. Lee
Thomas H. Lee
Thomas H. Lee is an American businessman, financier and investor and is credited with being one of the early pioneers in private equity and specifically leveraged buyouts. Thomas H. Lee Partners , the firm he founded in 1974, is among the oldest and largest private equity firms globally...
, the notable private equity investor who previously founded Thomas H. Lee Partners
Thomas H. Lee Partners
Thomas H. Lee Partners is a private equity firm based in Boston, Massachusetts specializing in leveraged buyouts, growth capital, special situations, industry consolidations, and recapitalizations....
and also owns the Blue Star group of fund of hedge funds.
History
In March 2006, Thomas H. LeeThomas H. Lee
Thomas H. Lee is an American businessman, financier and investor and is credited with being one of the early pioneers in private equity and specifically leveraged buyouts. Thomas H. Lee Partners , the firm he founded in 1974, is among the oldest and largest private equity firms globally...
resigned from Thomas H. Lee Partners
Thomas H. Lee Partners
Thomas H. Lee Partners is a private equity firm based in Boston, Massachusetts specializing in leveraged buyouts, growth capital, special situations, industry consolidations, and recapitalizations....
as the firm was nearing completion of fundraising for its sixth and current private equity fund
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
. In the same year, Lee formed Lee Equity Partners a private equity firm
Private equity firm
A private equity firm is an investment manager that makes investments in the private equity of operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital...
focused on the same leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
transactions that he had been completing for nearly 35 years at THL.
Both Lee and THL insisted that move was amicable, however persistent reports suggested that Lee, who had limited his day-to-day involvement in the firm and had relocated to New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
had been pushed out by several partners.
Among the first professionals to join Lee Equity Partners included Mark Gormley, a founding partner of Capital Z Partners; David Morrison, former president and CEO of Mercer Management Consulting and Allen Questrom, former CEO of J.C. Penney Company, Barneys New York
Barneys New York
Barneys New York is a chain of luxury department stores headquartered in New York City. The chain owns large stores in New York City, Beverly Hills, Boston, Chicago, San Francisco, Dallas, Las Vegas, and Scottsdale, and smaller stores in other locations across the United States.Brands sold include...
, Federated Department Stores
Federated Department Stores
Macy's, Inc. is a department store holding company and owner of Macy's and Bloomingdale's department stores. Macy's Inc.'s stores specialize mostly in retail clothing, jewelery, watches, dinnerware, and furniture....
and Neiman Marcus
Neiman Marcus
Neiman Marcus, formerly Neiman-Marcus, is a luxury specialty retail department store operated by the Neiman Marcus Group in the United States. The company is headquartered in the One Marcus Square building in Downtown Dallas, Texas, and competes with other department stores such as Saks Fifth...
. The firm also brought in former investment professionals from Bain Capital
Bain Capital
Bain Capital LLC is a Boston-based private equity firm founded in 1984 by partners from the consulting firm Bain & Company. Originally conceived as an early-stage, growth-oriented investment fund, Bain Capital today manages approximately $65 billion in assets, and its strategies include private...
and The Carlyle Group.
Among the firm's first investments included the acquisition of Deb Shops
Deb Shops
Deb Shops is a specialty retail chain store in the United States that sells women's clothing and accessories under its own private labels as well other well-known labels. The company is based in Philadelphia, Pennsylvania and principally serves women in their early-teens through their late-twenties...
in 2007.