Thomas Lee's Firm Is Thrust Into Spotlight After Founder's Death

Lee, who was now 78, established Lee Equity Partners in 2006 to help him relaunch his career as a pioneer in buyouts. He also continued to serve the role of chairman. Lee Equity's executive team has had to face a difficult time since then. The death of Lee has brought a new level to public attention for a shop with a $3 billion portfolio and no formal media relations team. The death comes at an important juncture for the firm of 40 people, which is raising $1 billion to fund its operations. Investors have been reluctant to part with their money in volatile markets. Key partners Yoo Jin Kim, Benjamin Hochberg and Joseph Rotberg will also be tested by the suicide. People said that some investors took comfort in the fact succession was largely complete. They advocated for the firm's wealth to be distributed more evenly among its partners. This was a position that they held during the financial crisis when many buyout firms were struggling to raise capital. Gormley and Lee met in the 1990s. Lee Equity expanded its reach in the US economy through a variety of investments including stakes at a large wealth advisory firm and a women's retail store. Lee Equity also invested in drug rehabilitation centers. Some people claimed that Lee had stopped being involved in portfolio management, fundraising, or deals at Lee Equity. In recent years, he had reduced his involvement in financial matters and stepped in as chairman. He was focusing more on his family and personal interests. In 1974, he founded Thomas H. Lee Partners, a Boston-based firm that pioneered the leveraged-buyout market. Lee's 1992 Snapple Beverage Corp. purchase earned him a 334% return of equity. He broke off with his partners in 2006 and started a rival company. Many institutions have expressed condolences to the family and offered support. Alaska Permanent Fund Corp. was one of the investors that committed money to the fund. -- With assistance from Erin Fuchs
Businessweek

__LINK__P.