Coller to back Thomas H Lee GP-led process – exclusive

Coller Capital has been selected as lead underwriter on a complex secondaries deal involving Thomas H Lee Partners that could be one of the largest yet.

The proposal for a GP-led process on the 2006-vintage, $8.1 billion Thomas H Lee Equity Partners VI is being put to limited partners on Wednesday, according to two sources familiar with the deal.

The exact nature of the Lazard-managed transaction is not clear.

Secondaries Investor first reported in February that Thomas H Lee Partners was mulling a GP-led process.

The firm, which was founded in 1974, launched its eighth flagship buyout fund in October last year seeking $3 billion, according to PEI data. It had raised $3.59 billion as of 21 October, according to filings with the Securities and Exchange Commission.

It is unclear whether the fund has held its final close and whether a stapled commitment is part of the GP-led process.

Thomas H Lee VI is a buyout vehicle backed by LPs including Canada Pension Plan Investment Board with a $250 million commitment, the California Public Employees’ Pension System with $240 million and New York State Teachers’ Retirement System with $100 million, according to PEI data.

It delivered a 1.89x total-value-to-paid-in multiple and a 12.3 percent net internal rate of return as of 31 March, according to performance figures from the Florida State Board of Administration.

Fund VI invested in assets including US Spanish-language media company Univision and human resources software and service provider Ceridian. Univision and Ceridian are listed in the firm’s current portfolio on its website.

Thomas H Lee Partners is one of a number of blue-chip private equity firms to close or embark upon GP-led processes this year, including Nordic Capital, Providence Equity Partners and Charterhouse Capital Partners.

Coller is seeking $9 billion for its latest dedicated secondaries fund, Coller International Partners VIII, according to PEI data.

Coller and Lazard declined to comment. Thomas H Lee Partners did not return a request for comment.

– Adam Le contributed to this report.