LOS ANGELES--(BUSINESS WIRE)--Levine Leichtman Capital Partners (“LLCP”), a Los Angeles-based private equity firm, announced today the closing of LLCP Lower Middle Market Fund III, L.P. (“LMM III”) with total capital commitments of $1.38 billion. LMM III, which was significantly oversubscribed and closed at its increased hard cap, received strong support from existing and new institutional investors across North America, Europe, the Middle East, and Asia.
LMM III will invest primarily in U.S.-based lower middle market companies with less than $50 million of revenues. The fund will utilize LLCP’s highly successful structured private equity strategy to invest in entrepreneur-led businesses, generating a combination of growth and income for investors. LMM III will be led by the Partners of LLCP, with the support of the firm’s established team of investment, originations and other professionals. LLCP has a robust transaction pipeline in its target markets – franchising, business services, education and engineered products – and will announce LMM III’s first platform investment in the near future.
Matthew Frankel, Managing Partner at LLCP, said, “We are pleased with LMM III’s extraordinarily successful fundraise, which highlights the global investment community’s interest in LLCP’s proven strategy of partnering with entrepreneurial companies positioned for long-term growth. We are grateful for the trust of our limited partners, both returning and new.”
Michael Weinberg, Managing Partner at LLCP, added, “The success of LLCP’s lower middle market investment strategy through our prior two dedicated funds reflects our team’s ability to source attractive investment opportunities, partner with talented management teams and build great companies. We are excited to have the support of leading global investors as we continue to create value across the U.S. lower middle market.”
LMM III is more than double the size of LLCP’s previous lower middle market fund, which closed in 2016 with total capital commitments of $615 million.
Kirkland & Ellis LLP served as fund counsel and Campbell Lutyens served as placement agent with respect to LMM III.
About Levine Leichtman Capital Partners
Levine Leichtman Capital Partners, LLC is a middle-market private equity firm with a 38-year track record of investing across various targeted sectors, including franchising, business services, education and engineered products. LLCP utilizes a differentiated Structured Private Equity investment strategy, combining debt and equity capital investments in portfolio companies. This unique structure provides a less dilutive solution for management teams and entrepreneurs, while delivering growth and income with a significantly lower risk profile.
LLCP’s global team of dedicated investment professionals is led by seven partners who have worked at LLCP for an average of 22 years. Since inception, LLCP has managed approximately $12.7 billion of institutional capital across 15 investment funds and has invested in over 90 portfolio companies. LLCP currently manages $9.0 billion of assets and has offices in Los Angeles, New York, Chicago, Charlotte, Miami, London, Stockholm and The Hague.