Levine Leichtman Capital Partners Completes $575 Million Multi-Asset Fund Successfully
Levine Leichtman Capital Partners Completes $575 Million Multi-Asset Fund Successfully
On November 22, 2024, Levine Leichtman Capital Partners (LLCP) announced the successful closing of its multi-asset continuation fund, amassing $575 million. This significant financial maneuver highlights LLCP’s ongoing commitment to fostering growth in its portfolio companies while addressing liquidity needs of its investors.
The LLCP LMM Acquisition Fund, L.P. is designed to acquire interests in three key portfolio entities: Blue Ridge Associates, Milton Industries, and Resolution Economics, all of which were previously part of LLCP's Lower Middle Market Fund, L.P. (LMM II). Joining LLCP in this venture, Hamilton Lane, a leading investment firm, acted as the main investor, supported by a diverse range of institutional investors.
Purpose of the Fund
This continuation fund has been structured to provide more time and additional capital to each portfolio company, aiding them in achieving their growth potential while also offering a liquidity option to Limited Partners (LPs) of LMM II who wish to monetize their interests. With the completion of this transaction, LMM II will be fully realized, signaling a successful conclusion to that investment phase.
Michael Weinberg, Managing Partner at LLCP, expressed gratitude towards Hamilton Lane and highlighted LLCP's continued collaboration with the management teams at Blue Ridge Associates, Milton Industries, and Resolution Economics. "We are proud of the success achieved by these companies and firmly believe in their future prospects. With this transaction, we are pleased to provide our investors with accelerated full liquidity and complete the realization of LMM II," he stated.
Collaboration with Hamilton Lane
Ryan Smith, Managing Director of the Secondary Investment Team at Hamilton Lane, shared his excitement about supporting LLCP’s high-quality portfolio companies in their next growth phase. He emphasized Hamilton Lane's unique value as a strategic partner, providing scale, expertise, and experience to create attractive solutions for both General Partners (GPs) and Limited Partners (LPs).
The Portfolio Companies
The three assets encompassed within the LLCP Continuation Fund, referred to as the 'CV Portfolio', include:
- - Blue Ridge Associates: This firm is a prominent provider of technological solutions and services for managing employee stock ownership plans (ESOPs) along with related 401(k) plans. Blue Ridge offers an extensive range of services tailored to meet the complex needs of ESOPs and similar pension setups, earning a reputation as a premier service provider in this niche.
- - Milton Industries: A leader in the supply of high-tech products for both pneumatic and hydraulic applications across diverse end markets, including vehicle services, industrial maintenance, repair and operations (MRO), defense, and agriculture. Milton caters to thousands of customers, offering an extensive product line that encompasses couplings, gauges, blow guns, filters, and more.
- - Resolution Economics: This specialist advisory firm provides economic and statistical analysis, expert testimonies, and compliance services to leading law firms and corporations amidst labor and commercial disputes. Resolution Economics excels in managing complex class action lawsuits, employing highly specialized personnel to navigate such intricate cases.
Advisors and Company Overview
LLCP was exclusively advised by Robert W. Baird & Co. in this transaction, while Kirkland & Ellis, LLP provided legal counsel. Founded 40 years ago, LLCP is a private equity firm focused on the middle market, with a diversified investment strategy that combines debt and equity investments to meet the tailored needs of portfolio companies. Currently, LLCP manages about $9 billion in assets across multiple investment funds.
In conclusion, the successful closure of this $575 million multi-asset continuation fund signifies LLCP's ongoing dedication to fostering growth among its portfolio companies while meeting the liquidity expectations of its investors, demonstrating a robust model for private equity investment in today’s financial landscape.
Topics Financial Services & Investing）
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