Thomas H. Lee Partners is selling approximately 13% of its stake in Black Knight Financial Services in a secondary public offering.

The sale of 5 million shares will reduce Thomas H. Lee's holdings in BKFS' publicly traded class A common stock from 56% to 49%, according to the prospectus. However, since BKFS treats its class A and class B stock equally when it comes to corporate matters, the sale will reduce Thomas H. Lee's voting power to 23% from 26%.

JPMorgan Securities, the underwriter for the offering, has an option to purchase an additional 750,000 BKFS shares from Thomas H. Lee.

All proceeds from the sale will go to Thomas H. Lee. The offering was announced after the market closed on May 8. BKFS opened trading on May 9 at $38.80 per share.

Fidelity National Financial and Thomas H. Lee conducted the initial public offering for BKFS in May 2015; FNF retained voting control through the BKFS class B stock.

In December, Fidelity National Financial said it would distribute its entire stake in Black Knight to shareholders of FNF Group, the tracking stock for its title business.

BKFS operates the MSP servicing system and the Empower loan origination system.

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