THL Credit Advisors Raises $511M For Third Direct Lending Fund

Jun 12 2017 | 6:22pm ET

The credit investment arm of private equity company Thomas H. Lee Partners has raised $511 million for its third direct lending fund reportedly aimed at mid-sized private companies in healthcare, financial services and software.

The new fund from THL Credit Advisors LLC was oversubscribed and closed above its target, the company said in a statement. The firm's lower middle market direct origination platform offers vertical specialization and synergies with its tradable credit platform and private equity parent. 

"The successful close of this fund is an acknowledgement of our experience as a leading, specialized lender in the lower middle market and demonstrates strong confidence in our investment strategy," said Brett Hinton, managing director of THL Credit, in the statement. "We are pleased to have attracted absolute return and private credit allocations from prestigious endowments, foundations, insurance companies, pensions, and family offices around the globe."

The new fund will target companies with $5 million and $50 million in trailing EBITDA, according to a Reuters article, and will provide capital across the capital structures as first-lien or other loans backed by collateral. The company’s most recent direct lending fund raised $187 million in 2013 and has invested in 25 companies. 

Founded in 2007, and with approximately $10 billion of assets under management, THL Credit Advisors is an alternative credit investment manager for both direct lending and broadly syndicated investments through public and private vehicles, collateralized loan obligations, separately managed accounts and co-mingled funds. Thomas H. Lee Partners, meanwhile, was founded in 1974 and is among of the world's oldest private equity firms, raising more than $20 billion of equity capital and invested in more than 130 businesses since inception. 


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