The paper introduces a novel two-phase heat transfer device (TPHTD) which is employed in the thermal management of light emitting diodes (LEDs). The heat transfer device structurally resembles a conventional loop heat pipe (LHP) without a compensation chamber, but operates very differently from it. The device is comprised of a central evaporator package and a circular coil that acts as a heat exchanger loop. The working fluid leaving the evaporator has a two-phase mixture quality of approximately 0.2. Having introduced the device, the paper delineates a mathematical model for predicting its thermal performance. The primary objective of the model is to provide a fundamental understanding of the operation of the device. A one-dimensional thermal resistance model (TRM) is utilized in modeling the evaporator. The paper presents a detailed discussion on obtaining these resistances from experiments conducted on the device. A correlation for the external heat transfer coefficient of the heat exchanger loop is proposed based on experiments and is found to be in good agreement with literature. The model predicts performance parameters such as board temperature, two-phase mixture quality, and saturation and subcooled temperatures (Tsat and Tsc) of the working fluid for different input thermal powers (Qtot). Based on experimental evidence, it is concluded that the majority of Qtot (∼75%) is utilized in phase change of the working fluid, and the rest reheats the working fluid from a lower subcooled temperature (Tsc) to the saturation temperature (Tsat) of the evaporator.