Thomas H. Lee Partners
Encyclopedia
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.
Founded in 1974, Thomas H. Lee Partners, often referenced as THL or THL Partners, is one of the oldest private equity firms in the United States.. Since its inception, Thomas H. Lee Partners has raised approximately $22 billion of equity capital, investing in more than 100 businesses with an aggregate purchase price of more than $150 billion, completing over 200 add-on acquisitions.
Thomas H. Lee Partners’ team of investment and operating professionals is based in Boston and includes 21 senior partners averaging 23 years of relevant experience and 16 years at the firm. The firm is led by Anthony DiNovi and Scott M. Sperling, who became co-presidents of the firm in 1999.
In 2011, THL had 13 senior investment partners with an average of 20 years professional experience within the industry.
The firm's namesake, Thomas H. Lee, left the firm and formed Lee Equity Partners in 2006.
Source: Preqin
(Formerly known as Private Equity Intelligence)
Thomas H. Lee Partners invests in growth-oriented companies within three broad sectors: Business & Financial Services, Consumer & Healthcare and Media & Information Services. The firm seeks acquisition candidates with opportunities for sustainable growth in their core and/or related businesses that are positioned to capitalize on key competitive advantages to increase market share, expand distribution or product lines and participate in industry consolidation.
Notable transactions sponsored by the THL include Aramark,
Ceridian
,
Dunkin' Brands
,
Experian, Fidelity National Information Services, HomeSide Lending, Houghton Mifflin, inVentiv Health,
Michael Foods, The Nielsen Company, ProSiebenSat.1, Snapple
, Warner Chilcott, Warner Music Group and West Corporation.
Thomas H. Lee Partners' most recent fund has performed well, according to CalPERS.
Thomas H. Lee Partners is also known for its investment in Refco
a financial services
company specializing in commodities and futures
contracts, which collapsed suddenly in October 2005, only months after its IPO. Thomas H. Lee Partners has since settled all claims by Refco’s brokerage customers, bankruptcy trustee and shareholders. Despite the issues caused by Refco, Thomas H. Lee Partners was able to raise $10.1 billion for its most recent private equity fund, its largest fund to date.
THL Credit Advisors provides junior debt and equity to middle-market companies seeking capital for growth, acquisition, recapitalization and/or change of control.
TH Lee Putnam Ventures is a technology-focused private equity firm affiliated with Thomas H. Lee Partners and Putnam Investments, a leading global money management firm. TH Lee Putnam Ventures manages $1.1 billion in capital commitments and has invested approximately $850 million in more than 43 companies since the firm's formation in 1999.
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 based in Boston, Massachusetts specializing in leveraged buyouts, 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...
, special situations, industry consolidations, and recapitalizations.
Founded in 1974, Thomas H. Lee Partners, often referenced as THL or THL Partners, is one of the oldest private equity firms in the United States.. Since its inception, Thomas H. Lee Partners has raised approximately $22 billion of equity capital, investing in more than 100 businesses with an aggregate purchase price of more than $150 billion, completing over 200 add-on acquisitions.
Thomas H. Lee Partners’ team of investment and operating professionals is based in Boston and includes 21 senior partners averaging 23 years of relevant experience and 16 years at the firm. The firm is led by Anthony DiNovi and Scott M. Sperling, who became co-presidents of the firm in 1999.
In 2011, THL had 13 senior investment partners with an average of 20 years professional experience within the industry.
The firm's namesake, Thomas H. Lee, left the firm and formed Lee Equity Partners in 2006.
Investments
The firm has raised $22 billion since inception and is currently investing out of its $10 billion sixth fund:- 1984 - Fund I($66 million)
- 1989 - Fund II ($568 million)
- 1996 - Fund III ($1.4 billion)
- 1998 - Fund IV ($3.4 billion)
- 2001 - Fund V ($6.1 billion)
- 2006 - Fund VI ($10.1 billion)
Source: Preqin
Preqin
Preqin is a research and consultancy firm focusing on alternative asset classes. The company covers private equity, real estate, infrastructure, and hedge funds and is headquartered in London, UK, with additional offices in New York and Singapore. Preqin maintains a number of publications and...
(Formerly known as Private Equity Intelligence)
Thomas H. Lee Partners invests in growth-oriented companies within three broad sectors: Business & Financial Services, Consumer & Healthcare and Media & Information Services. The firm seeks acquisition candidates with opportunities for sustainable growth in their core and/or related businesses that are positioned to capitalize on key competitive advantages to increase market share, expand distribution or product lines and participate in industry consolidation.
Notable transactions sponsored by the THL include Aramark,
Ceridian
Ceridian
Ceridian Corporation is a global business services company in the human resources, transportation and retail markets, serving businesses worldwide with employees in the USA, Canada, Europe and Mauritius. It was a publicly traded company on the New York Stock Exchange until it was acquired in 2007...
,
Dunkin' Brands
Dunkin' Brands
Dunkin' Brands Group, Inc. runs several chains of fast-food restaurants. It is headquartered in Canton, Massachusetts.-History:On December 12, 2005, Pernod Ricard, who had just taken control of Allied Domecq, announced plans to sell the Dunkin' Brands group...
,
Experian, Fidelity National Information Services, HomeSide Lending, Houghton Mifflin, inVentiv Health,
Michael Foods, The Nielsen Company, ProSiebenSat.1, Snapple
Snapple
Snapple is a brand of tea and juice drinks which is owned by Dr Pepper Snapple Group and based in Plano, Texas. The brand was founded in 1972. The brand achieved some notoriety due to various pop-culture references including television shows.-History:...
, Warner Chilcott, Warner Music Group and West Corporation.
Thomas H. Lee Partners' most recent fund has performed well, according to CalPERS.
Thomas H. Lee Partners is also known for its investment in Refco
Refco
Refco was a New York-based financial services company, primarily known as a broker of commodities and futures contracts. It was founded in 1969 as "Ray E. Friedman and Co." Prior to its collapse in October, 2005, the firm had over $4 billion in approximately 200,000 customer accounts, and it was...
a financial services
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
company specializing in commodities and futures
Futures contract
In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
contracts, which collapsed suddenly in October 2005, only months after its IPO. Thomas H. Lee Partners has since settled all claims by Refco’s brokerage customers, bankruptcy trustee and shareholders. Despite the issues caused by Refco, Thomas H. Lee Partners was able to raise $10.1 billion for its most recent private equity fund, its largest fund to date.
Affiliates
Thomas H. Lee Partners’ affiliates include:THL Credit Advisors provides junior debt and equity to middle-market companies seeking capital for growth, acquisition, recapitalization and/or change of control.
TH Lee Putnam Ventures is a technology-focused private equity firm affiliated with Thomas H. Lee Partners and Putnam Investments, a leading global money management firm. TH Lee Putnam Ventures manages $1.1 billion in capital commitments and has invested approximately $850 million in more than 43 companies since the firm's formation in 1999.
External links
- Thomas H. Lee Partners website
- Thomas H. Lee (FundingUniverse.com, from International Directory of Company Histories, Vol. 24. St. James Press, 1999.)
- Banks Balk at Paying for Clear Channel Deal (New York Times, 2008)