Thomas H. Lee’s Strategy

The investment professionals of Thomas H. Lee Partners no longer “latch ourselves on” to growth the way they did in the 1980s, but rather deploy operating talent to drive returns, according to the firm’s Co-President, Scott Sperling.

In a wide-ranging interview with Privcap, Sperling discusses the evolution of his firm’s operating strategy, how it is now able to turn around the fortunes companies like Warner Music, what it was like to get “beat badly” during mid-2000s buyout auctions, and how the firm models out success without the deal size and “quantum of leverage” available during the buyout boom. Sperling also describes a core investment thesis of THL today, which is looking for “companies that help companies.”