(Reuters) — THL Credit Advisors LLC, the credit investment affiliate of buyout firm Thomas H. Lee Partners LP, said on Sunday it completed raising its third fund focused on direct lending to midsized privately-owned companies, amassing $511 million.
The fund is focused on lending to companies in healthcare, financial services and software, and will provide growth capital and financing for leveraged buyouts and dividend recapitalizations, Chris Flynn, Co-CEO of THL Credit Advisors LLC, told Reuters in an interview.
“If you think of our clients, who are private-equity sponsors, anytime we increase our capital base, they’re pleased because we have more potential financing solutions to meet their capital needs,” said Flynn.
The fund targets companies with between $5 million and $50 million in 12-month earnings before interest, taxes, depreciation and amortization. The new fund will work on financings with partners of up to $100 million, holding on to as much as $50 million for its own books across its platform, according to Flynn.
The financings will be provided across companies’ capital structures, as first-lien or other loans backed by collateral, the company said.
THL Credit has five offices in the United States. The firm’s previous direct lending fund raised $187 million in 2013 and invested in 25 companies.