Putnam Investments has formed a partnership with private equity firm Thomas H. Lee, offering alternative investment funds to institutional investors, financial advisers and limited partners. TH Lee, Putnam Capital is 75% owned by Lee and 25% by Putnam. Terms of the deal were not disclosed.
Lee and Putnam jointly will build and manage the company, which will offer its first fund by years end. Other funds may include venture capital, fund of funds, European private equity, real estate, alternative debt funds and hedge funds. Officials said they would consider hiring industry specialists to help develop funds and also might invest in or acquire other alternative investment businesses.Putnam also has taken an ownership stake in Lees core private equity business, which now will be called Thomas H. Lee Partners. Terms were not disclosed.