Fubon Life Insurance, an insurer affiliated with Taipei-based financial conglomerate Fubon Financial, has committed $65 million to the ninth flagship fund of Boston-based private equity (PE) firm Thomas H. Lee Partners (THL).
According to a filing with the Taiwan Stock Exchange (TWSE) last week, Fubon Life’s commitment accounts for about 1.53% of the total capital pool of the ninth fund. That translates to a targeted fund size of about $4.25 billion.
Previously, Cathay Life Insurance, the insurance arm of Taiwan’s conglomerate Cathay Financial, had agreed to invest $60 million in the same fund, DealStreetAsia reported last week.
Other limited partners (LPs) that recently injected capital into the new vehicle are pension funds based in the United States. Massachusetts Pension Reserves Investment Management Board, which invested in seven previous THL funds, agreed to commit up to $200 million to the ninth vehicle in February. Materials for the pension’s board meeting showed the fund’s hard cap was set at $4.9 billion.
The $22.8-billion Teachers’ Retirement System of Louisiana also approved a commitment of as much as $100 million to the buyout fund in January, the Wall Street Journal had earlier reported.
THL, a middle-market growth firm started in 1974, invests exclusively in three industries, namely financial services, healthcare, and technology & business solutions. By far, the firm has raised over $25 billion of equity capital with investments in over 150 companies, as well as more than 400 add-on acquisitions, shows its website.
While it is in the market raising its ninth fund, THL is currently investing from its Fund VIII, a $3.6-billion, 2019-vintage PE fund. The firm typically targets companies with a valuation of $250 million to $2.5 billion, although it considers a broad range of transactions.
THL also manages the Automation Fund, which invests in partnership with the flagship funds in tech-enabled companies that provide automation products, software, and services to help improve productivity in business processes. It announced the final close of THL Automation Fund at $900 million in November 2020.
Fubon Life Insurance, which offers life protection, savings, annuity, accident, and health insurance products to customers, is the second-largest insurer in Taiwan based on total premiums after Cathay Life Insurance.
Earlier this year, Fubon Life Insurance approved a $65-million commitment to Tiger Global Private Investment Partners XIV, the 13th venture fund of New York-based Tiger Global Management. The investment accounted for 1.73% of the total capital pool, indicating a planned fund size of close to $3.76 billion.
In January, the insurer also disclosed its plans of investing $65 million in London-based Coller International Partners VIII and another $20 million in Hamilton Lane Secondary Fund V managed by US-based alternative investment manager Hamilton Lane.