Thompson Street Capital Partners (TSCP) announced today that they have successfully closed TSCP III, their latest private equity fund, at the target amount of $350 million. The commitments for TSCP III were primarily from investors in TSCP II, which closed in 2006.
According to Jim Cooper, Founder and Senior Managing Partner, “We expanded our investor base to a degree, but relied primarily on our TSCP II investors to raise this fund. Our last fund has performed very well, despite navigating through the recession. Our investors showed their confidence that the team here could continue that success into the next fund.” TSCP did not use a placement agent to raise Fund III.
Thompson Street invested in 12 companies in Fund II. Two of those investments have been completely exited and one has been taken public. Cooper said that the success of Fund II was rooted in buying businesses that could grow in a weak environment and steering clear of businesses that they thought would struggle during the downturn. “We consciously avoided cyclical businesses and focused instead on finding companies operating in niches with favorable dynamics,” Cooper added.
Thompson Street will now turn its attention to buying businesses for Fund III, investing in middle-market service, value-added distribution and niche manufacturing companies.