Key Takeaways
- • Thomas H. Lee Partners (THL) announced the final close of Thomas H. Lee Equity Fund IX at its hard cap, with $5.6 billion in capital commitments, as of October 4, 2021.
- • Fund IX received over $250 million in General Partner commitments and drew a global LP base including public and private pensions, sovereign wealth funds, banks, insurers, endowments, foundations, family offices and high-net-worth individuals.
- • Fund IX will target middle-market growth companies in THL's Identified Sector Opportunities across Financial and Essential Services, Healthcare and Technology.
- • The fund has already committed approximately $935 million, or 17% of committed capital, to four companies: Brooks Automation, Odessa, House of Design and Bazaarvoice.
- • THL's Automation Fund, a $900 million vehicle described as the only private equity fund dedicated to automation, closed within the preceding 12 months alongside 10 new ISO investments.
Summary
Thomas H. Lee Partners, L.P. (THL) announced on October 4, 2021 the successful final close of its ninth flagship fund, Thomas H. Lee Equity Fund IX ("Fund IX"), at its hard cap with $5.6 billion in capital commitments, according to the firm's Business Wire release. The fund drew strong investor demand and includes more than $250 million of General Partner commitments. Limited partners include leading public and private pension funds, sovereign wealth funds, banks, insurance companies, endowments, foundations, family offices and high-net-worth individuals.
Fund IX will continue THL's strategy of investing behind its Identified Sector Opportunities (ISOs), which the firm says benefit from robust secular growth trends. Within those sectors, THL targets middle-market growth companies with high-quality business models and attractive return on invested capital. The firm supports portfolio companies through its Strategic Resource Group, an in-house team of 18 senior professionals covering areas such as technology and innovation, go-to-market strategy, operations, organizational design, M&A integration and cross-portfolio services.
The close follows an active 12 months for THL, including the close of a $900 million automation-focused fund (the "Automation Fund") and 10 new investments in its ISO areas. Fund IX has already committed approximately $935 million, or 17% of total committed capital, to Brooks Automation, Odessa, House of Design and Bazaarvoice. Through Fund VIII and the Automation Fund, THL committed approximately $964 million over the last twelve months to companies including Alight Solutions, FourKites, AbacusNext, Ashling Partners, Care Hospice and Insurance Technologies.
Co-CEOs Todd Abbrecht and Scott Sperling framed the raise as evidence of the firm's value creation capabilities and domain expertise. Abbrecht said the firm has invested heavily over the last decade in industry-leading talent. Sperling cited investor conviction in middle-market growth opportunities across the firm's three sectors. Since 1974, THL says it has raised more than $30 billion of equity capital, invested in over 160 companies and completed more than 500 add-on acquisitions.
Fund IX will continue THL's strategy of investing behind its Identified Sector Opportunities (ISOs), which the firm says benefit from robust secular growth trends. Within those sectors, THL targets middle-market growth companies with high-quality business models and attractive return on invested capital. The firm supports portfolio companies through its Strategic Resource Group, an in-house team of 18 senior professionals covering areas such as technology and innovation, go-to-market strategy, operations, organizational design, M&A integration and cross-portfolio services.
The close follows an active 12 months for THL, including the close of a $900 million automation-focused fund (the "Automation Fund") and 10 new investments in its ISO areas. Fund IX has already committed approximately $935 million, or 17% of total committed capital, to Brooks Automation, Odessa, House of Design and Bazaarvoice. Through Fund VIII and the Automation Fund, THL committed approximately $964 million over the last twelve months to companies including Alight Solutions, FourKites, AbacusNext, Ashling Partners, Care Hospice and Insurance Technologies.
Co-CEOs Todd Abbrecht and Scott Sperling framed the raise as evidence of the firm's value creation capabilities and domain expertise. Abbrecht said the firm has invested heavily over the last decade in industry-leading talent. Sperling cited investor conviction in middle-market growth opportunities across the firm's three sectors. Since 1974, THL says it has raised more than $30 billion of equity capital, invested in over 160 companies and completed more than 500 add-on acquisitions.
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