Thomas H. Lee Partners, which has yet to begin fundraising for its next buyout fund, is reportedly putting 30% equity into its $1.1 billion purchase of CompuCom Systems.
Earlier this month, Court Square Capital Partners — which is marketing its latest buyout fund — said it was exiting CompuCom after more than five years. THL is investing $325 million in equity in the CompuCom transaction, according to Moody’s Investors Service.
THL executives declined to comment.
Dallas-based CompuCom, an IT services and solutions specialist, produced $1.4 billion in revenue in 2012, Moody’s says. The transaction is THL’s first new deal this year.
THL’s equity investment is in the 25% to 35% range of what other PE firms are putting to work, one PE exec says. For its last big acquisition — its purchase of Party City for $2.69 billion in 2012 — THL invested $584 million equity, or about 22% of the total.
It is unclear when Boston-based THL plans to raise a new fund. Bloomberg News reported last June that THL was weighing a $4 billion buyout fund. Term Sheet noted in February that THL still wasn’t out marketing and had no plans to raise a new fund until later this year.
THL closed its sixth buyout fund at $8.1 billion, plus another $2 billion for co-investment vehicles, in 2007, Dealbook said at the time. Prior to its acquisition of Party City, THL’s fund VI was reportedly 70% invested.
THL’s fund VI is generating a 2.4% net IRR, according to Sept. 30 data from CalPERS.
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