TH Lee and Groupe Arnault team up for $2bn fund

26 March 2001

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TH Lee Putnam Capital LP, the alliance between Thomas H. Lee Partners and Putnam Investment which recently raised $6.1bn for Thomas H. Lee Equity Partners V, has teamed up with Groupe Arnault to form TH Lee Groupe Arnault Partners to manage a fund looking to raise $1.5-2bn. Few details on the structure or terms and conditions of the fund are currently available, although a first close on the vehicle is expected by the end of 2001. Investments made will be in the region of $100-200m and will target European companies operating within the financial, business services, telecommunications, media and consumer goods sectors. The investment committee will be headed by Thomas H. Lee, chairman and CEO of TH Lee Putnam Capital, and Bernard Arnault, chairman of Groupe Arnault. Richard S Trutanic, senior managing director at Groupe Arnault, will be a senior managing partner of TH Lee Groupe Arnault Partners and will be responsible for recruiting a team of experienced private equity professionals to invest the fund.

The joint venture, which will establish offices in Paris, London, and other locations, will provide Thomas H. Lee Equity Partners V with valuable links into Europe. As well as the current venture, Groupe Arnault also manages Europ@web, the vehicle for technology and early-stage investment in which Suez Lyonnais des Eaux acquired a 30% stake recently.