Thomas H. Lee is a Boston, Massachusetts based private equity firm that deals with identification and acquisition of substantial ownership positions in large companies that are growth oriented. They work on these companies in the hopes of securing a venue where they can add strategic and managerial expertise that allows them to create value for their business partners. Considered one of the most successful private equity firms, Thomas Lee was able to raise an approximate of $22 billion worth of equity capital while placing investments in more than a hundred business establishments, with a cumulative purchase price of over $125 billion. In addition to that, the firm also continuously seeks to build more companies that possess a lasting value while generating superior returns for their fellow operating partners and investors.
This leading equity firm focuses on companies that are able to capitalize on certain key competitive advantages in order to boost revenue as well as to increase free cash flow by means of market growth, share gains, market consolidation and through product line expansion. A few of the targeted companies’ identifiable strengths include dominant market share positions, well recognized brand names, unique product features, manufacturing, as well as other cost advantages.
Thomas Lee emphasizes the importance of free cash flow as the main gauge of profitability and that it has a considerable capability in terms of developing the business of its portfolio companies. The group works together with its portfolio companies in order to enhance the growth of free cash flow by means of developing their market potential and product lines, as well as in establishing effective systems, increasing resources, pursuing acquisitions and changing managements. Thomas H. Lee is also in the lookout for the ability to advance core operations through increased efficiencies. The firm’s investment philosophy and growth oriented strategy underscores the general appreciation in the enterprise value of a purchased or acquired company as compared to the mere repayment of acquisition debts.
