Report: Thomas H. Lee Looks To Get Smaller

Downsizing?

THOMAS H. LEE PARTNERS, the private-equity firm famous for being a part of the CLEAR CHANNEL COMMUNICATIONS buyout, "is weighing a $4 billion buyout fund, half the size of its predecessor, according to two people with knowledge of the firm’s plans," reports BLOOMBERG.

Most recently, THL was part of two new investment deals with RYAN SEACREST MEDIA and CLEAR CHANNEL (NET NEWS 1/31), "designed to drive business growth across multiple media platforms." Funds sponsored by THL and BAIN CAPITAL have together committed up to $300 million to working with RSM to "identify, acquire and develop innovative media companies, media content and other media properties that can be leveraged to support a range of media enterprises."

THL "is considering a lower target after taking longer than average to deploy the $8 billion fund gathered in 2006," a source told BLOOMBERG, "who asked not to be identified because the information is private. A smaller fund would be easier to invest within the five-year window that’s customary, the person said. Buyout firms including KKR & CO. and CARLYLE GROUP LP are raising less money for their latest pools compared with the mega-funds they raised during the 2005-2007 buyout boom because investors have grown more discriminating since the financial crisis four years ago."

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