Founded in 1974 by its namesake Thomas H. Lee, Thomas H. Lee Partners, often referenced as THL or THL 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. In 2012, Private Equity International ranked THL Partners 22nd of the top 300 private equity firms based on funds raised. Thomas H. Lee Partners’ team includes 21 senior partners led by Anthony DiNovi and Scott M. Sperling, who became co-presidents of the firm in 1999. 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 $2.6 billion seventh fund:
1984 - Fund I
1989 - Fund II
1996 - Fund III
1998 - Fund IV
2001 - Fund V
2006 - Fund VI
2015 - Fund VII
Source: An eighth fund is being raised, targeting $3 billion. 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 THL include Aramark, Conseco, 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.
Controversies
Thomas H. Lee Partners is also known for its leveraged buyout acquisition in 2004 of Refco, a financial services company specializing in commodities and futures contracts, which collapsed suddenly in October 2005, only months after its IPO. Refco's collapse cost investors more than $1 billion sparking multiple suits for negligence against the firm. Thomas H. Lee Partners in turn sued Refco's auditors and former executives claiming they hid the fraud which caused Refco's collapse. Thomas H. Lee Partners has since settled all claims by Refco’s brokerage customers, bankruptcy trustee and shareholders. In more recent news, Thomas H Lee partners purchased Art Van Furniture in 2017. In just 3 short years, the once profitable business was bankrupt. Over 3500 employees were terminated with no notice and immediately stripped of health benefits. Customers who had made purchases were denied the ability to receive their merchandise and no refunds were given.
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.
