Levine Leichtman Capital Partners Successfully Closes $575 Million Multi-Asset Continuation Fund

LLCP's Successful Closure of a $575 Million Multi-Asset Continuation Fund

On November 22, 2024, Levine Leichtman Capital Partners (LLCP) proudly announced the successful closure of a $575 million multi-asset continuation fund. This strategic financial move, named the LLCP LMM Acquisition Fund, L.P., is primarily aimed at acquiring stakes in three prominent portfolio companies: Blue Ridge Associates, Milton Industries, and Resolution Economics. These strategic acquisitions are part of LLCP's broader strategy to create value and enable growth in its portfolio companies while also providing liquidity options for existing limited partners.

Significance of the Transaction

The newly established LLCP LMM Acquisition Fund is designed not only to bolster the operational capabilities of its target companies but to also afford LLCP Lower Middle Market Fund, L.P. (LMM II) investors a timely exit opportunity through crystallization of performance across the portfolio. By facilitating an enhanced growth trajectory and providing the necessary capital, LLCP aims to unlock the full potential of these companies.

Michael Weinberg, LLCP's Managing Partner, and Andrew Schwartz, Partner, expressed their satisfaction with this development. They highlighted, “We appreciate the support from Hamilton Lane and are excited to continue our partnership with the management teams at Blue Ridge Associates, Milton Industries, and Resolution Economics. We're proud of the success each of these companies has achieved and firmly believe in their future prospects.”

The Portfolio Companies

The LLCP Continuation Fund focuses on three assets, referred to as the “CV Portfolio.” Each company plays a significant role in its respective industry:

1. Blue Ridge Associates - This firm is recognized as a leading provider of technology solutions and services for the administration and record-keeping of Employee Stock Ownership Plans (ESOPs) and associated 401(k) plans. Their extensive service offerings and the expertise of their professional administrators meet the complex and vital needs of ESOP and other qualified retirement plans.

2. Milton Industries - A top supplier of high-tech products for pneumatic and hydraulic applications across various end markets, including automotive services, maintenance, repair, and operations (MRO), defense/aerospace, agriculture, among others. With a robust portfolio consisting of couplers, gauges, check valves, blow guns, filters, regulators, lubricators, hoses and fittings, special tools, and fluid management equipment, Milton serves thousands of customers.

3. Resolution Economics - This consulting firm specializes in providing economic and statistical analyses, alongside expert testimony and compliance services to top-tier law firms and businesses in the fields of labor and employment, as well as commercial litigation. Known for handling intricate class action lawsuits, the firm boasts a highly skilled workforce well-equipped to meet these challenges.

Robert W. Baird & Co. served as LLCP's exclusive financial advisor, while Kirkland & Ellis, LLP provided legal guidance throughout the transaction.

About LLCP and Hamilton Lane

LLCP is a middle-market private equity firm with a history stretching over 40 years of investment in targeted sectors such as business services, franchising, education and training, and engineering products. They apply a differentiated investment strategy known as 'Structured Private Equity,' which blends debt and equity investments to provide flexible and growth-oriented capital structures.

Hamilton Lane, a seasoned player in the private markets investment space, has been dedicated to these markets for over three decades. As a strategic partner, Hamilton Lane provides the necessary scale, expertise, and experience to spur compelling solutions for both general and limited partners involved in this lucrative investment landscape. They currently manage assets exceeding $947 billion, positioning themselves as leaders in facilitating private market investments.

For anyone following LLCP and its strategic maneuvers in the private equity arena, this recent fund closure underlines LLCP's commitment to fostering growth in its portfolio and completing a successful lifecycle for its existing funds. Their continued partnerships will undoubtedly support the ongoing success of their investments and offer invaluable returns to their investors.

For further information, visit www.LLCP.com or www.HamiltonLane.com.