Thompson Street Capital raises bulk of sixth fund on first close

The firm is expected to hold a final close around the fourth quarter.

Thompson Street Capital has held a first close on its sixth fund on about $1.1 billion, heading for its $1.5 billion target, a person with knowledge of the firm told Buyouts.

The firm is expected to hold a final close around the fourth quarter, the source said. Park Hill Group is working as placement agent on the fundraising.

A spokesperson for Thompson Street did not respond to a request for comment.

Thompson Street Capital targets founder-led mid-market businesses across healthcare and life sciences, software and technology services and business services and engineered products. It invests equity of $25 million to $150 million in companies with EBITDA between $5 million and $20 million.

Recent activity includes the acquisition of Freddy’s Frozen Custard & Steakburgers in March. In December, Thompson Street invested in WeVideo, a collaborative video creation platform, and the firm’s portfolio company Marmic Fire & Safety Co added-on Total Fire & Safety.

St Louis-based Thompson Street closed Fund V on $1.15 billion in 2018, beating its $850 million target. Fund IV closed on $640 million in 2015; Fund III closed on around $350 million in 2012, its first fund after co-founder Peter Finely retired; and Fund II closed on $300 million in 2007.

The firm’s debut pool closed on $145 million in 2002, the firm said in a statement at the time. Fund of funds Capital Z Investments helped anchor that fund with a large commitment, the firm said.

Update: This article was updated to indicate that Fund VI is targeting $1.5 billion.