Thomas H Lee Partners, one of the oldest private equity firms in the industry, has set a fundraising target of $6.25bn for its latest buyout fund, Thomas H Lee Equity Partners X, according to a report by Private Equity International.
If successful, the fund will be 12% larger that the firm’s predecessor vehicle, Fund IX, which closed in 2021 with $5.6bn, but ill still fall short of THL’s largest ever fund, 2007’s $8.1bn Fund VI.
Fund X will continue THL’s strategy of making control investments in mid-market companies, primarily based in North America. The fund will focus on three key industry sectors – financial technology and services, healthcare, as well as technology and business solutions. The targeted companies typically have enterprise values ranging from $250m to $3bn, according to documents from one of the fund’s limited partners, the Minnesota State Board of Investment.
A distinctive feature of THL’s approach is its focus on 18 sub-sectors, known as Identified Sector Opportunities, which are researched extensively, often over several months or years, before making an initial investment.
Since its inception, THL has partnered with more than 170 businesses globally and completed over 675 add-on acquisitions. Its most recent transaction, finalised in May, was the $2.5bn acquisition of Agiliti, a medical technology management and services provider. Additionally, last year, the firm acquired a majority interest in Standish Management, a fund administration services provider, for $1.6bn from Vitruvian Partners.
