Thompson Street Capital Partners (TSCP) has closed its oversubscribed sixth investment fund, Thompson Street Capital Partners VI LP, with total commitments exceeding the $1.5 billion target.
Commitments to Fund VI came from both new and existing limited partners, including public, corporate and foreign pension funds, endowments, insurance companies, foundations, and family offices. Like its earlier funds, the partners of TSCP made substantial capital commitments to Fund VI. TSCP’s earlier fund, Thompson Street Capital Partners V LP, closed in July 2018 at its hard cap of $1.15 billion.
“Our focus when we launched the firm 22 years ago was to invest in exceptional companies and facilitate their strategic growth, and our track record illustrates we’ve done exactly that,” said Jim Cooper, the founder and a managing partner of TSCP. “The support for Fund VI from both existing and new investors has been excellent, demonstrating confidence in the strength of our team and the success of our investment approach.”
St. Louis-based TSCP makes equity investments of $50 million to $250 million in companies with EBITDA between $5 million and $50 million. Sectors of interest include healthcare and life science services, software and technology services, and business and consumer products and services.
“We are excited to continue to grow our firm, as we remain committed to our fundamental strategy of partnering with founders and management teams in our core industries of focus and then providing the right support and resources to help these already-exceptional businesses achieve accelerated growth – creating value for founders, management teams and our investors,” said Bob Dunn, a managing partner of TSCP.
TSCP has already invested twenty-five percent of Fund VI’s capital in four platforms including Silverchair, a Virginia-based provider of content management software to scientific, technical and medical publishers (August 2022); Benefit Recovery Group, a Tennessee-based provider of subrogation and compensation recovery services to self-insured companies (August 2022); PestCo, a Texas-based provider of residential and commercial pest control services (November 2021); and Vector Laboratories, a California-based manufacturer of visual detection reagents used by life science researchers for slide staining and imaging workflows (September 2021).
In tandem with the close of Fund VI, TSCP has also announced that Wafra has made a minority investment in the firm. “We are delighted to partner with Wafra, a firm whose like-minded approach to partnership will support this new chapter as we seek to maximize value for our investors,” added Mr. Cooper.
New York-based Wafra, led by CEO Fawaz Al-Mubaraki, has more than $33 billion of assets under management and invests across a range of asset classes including minority investments in private equity firms. Funds advised by Wafra have now made 24 minority investments.
“Driven by a talented team of investment professionals, Thompson Street deploys a differentiated investment approach that has provided strong and consistent returns to investors for over two decades. We are excited to partner with them on this next chapter,” said Lauren Rich, a managing director at Wafra.
For the raising of Fund VI, Park Hill Group was the placement agent and Kirkland & Ellis provided legal services. Advising TSCP on the investment from Wafra was Evercore with Kirkland & Ellis providing legal services.
© 2022 Private Equity Professional | August 18, 2022