Leonard Green & Partners Investment Activities and Performance

Leonard Green & Partners has a strong track record of making strategic investments across various industries. They've made investments in companies like Petco, Party City, and Baskin-Robbins.

Their investment strategy is focused on partnering with experienced management teams to drive growth and profitability. This approach has led to significant returns for their investors.

One notable example of their success is their investment in Party City, which they acquired in 2006 and later sold in 2015 for a significant profit.

Leonard Green & Partners was founded in 1989 by Leonard I. Green and his partners, including Jonathan D. Sokoloff.

The firm's headquarters is located in Los Angeles, California, and it has quickly established itself as a prominent player in the private equity industry.

Leonard Green had previously gained extensive experience in retail and consumer sectors, which would later become key areas of focus for LGP's investment strategy.

LGP focuses primarily on private equity investment in the service-based sectors, including distribution, industrials, retail, business services, consumer, and healthcare.

The firm's tenets of investment strategy are centered around finding market-leading companies, growth companies with multiple ways to win, world-class management teams, and a focus on free cash flow and other margins of safety.

Leonard Green passed away in 2002, leaving the firm to the hands of Jonathan D. Sokoloff, Peter J. Nolan, and John G. Danhakl.

In the last 3 years, LGP has acquired 9 companies and exited 2 companies, with a focus on secondary buyouts and going private investments.

Here are LGP's most common sectors for investment and exit types:

LGP has invested in 30 US states and 8 different countries, with its largest disclosed acquisition occurring in 2009 when it acquired IMS Health Holdings for $5.2B, and its largest disclosed exit occurring in 2024 when it sold SRS Distribution for $18.3B.

Leonard Green & Partners employs a strategic and disciplined investment approach aimed at identifying and partnering with high-quality businesses poised for long-term growth and value creation.

At the core of LGP's investment strategy are several key principles. The firm seeks to create value in its portfolio companies through a combination of operational improvements, strategic initiatives, and prudent capital allocation.

LGP works closely with management teams to develop and execute growth plans, optimize operational efficiencies, and pursue strategic initiatives that enhance long-term competitiveness and profitability.

LGP targets investments in sectors where it possesses deep industry expertise, including retail, consumer products, healthcare, and business services. By focusing on specific industries, LGP can leverage its specialized knowledge and networks to identify attractive investment opportunities.

Leonard Green & Partners has a track record of successful investments, but not all of its portfolio companies have performed as expected.

Like any investor, LGP has experienced its share of challenges with underperforming investments, which can impact overall fund performance and investor returns.

Despite these challenges, LGP's experienced team and rigorous investment approach have helped the firm navigate these issues and achieve strong returns for its investors.

Portfolio Company Performance is a crucial aspect of a fund's overall success. Not all of LGP's portfolio companies have performed as expected, which can impact investor returns.

Investors should be aware that even successful funds like LGP can experience challenges with underperforming investments.

Leonard Green & Partners has had a significant number of portfolio exits, with 35 in total.

Their latest portfolio exit was Eyemart Express, which was acquired by VSP Vision on October 9, 2024, for an undisclosed valuation of $XXM.

Leonard Green & Partners has also had a notable exit with SRS Distribution, which was acquired by The Home Depot on March 28, 2024, for a valuation of $XXM.

Life Time went public through an IPO-II on October 7, 2021, with a valuation of $XXM.

Here are some of the notable portfolio exits of Leonard Green & Partners:

The sources for these exits are listed as 2, 6, 9, and 10, indicating the number of sources used to verify the information.

Leonard Green & Partners (LGP) has been actively involved in private equity investments since its founding in 1989. The firm has a strategic and disciplined investment approach focused on partnering with high-quality businesses poised for long-term growth and value creation.

LGP has acquired a total of 55 companies, with its latest acquisition being GeoStabilization International on September 26, 2024, for a valuation of $XXM. This acquisition is part of LGP's "Other" investment stage.

Here's a breakdown of LGP's acquisitions:

LGP's investment strategy has been successful, with the firm establishing itself as a prominent player in the private equity industry.

Leonard Green & Partners has made 20 investments across six funds. Some of their notable deals include Tecta America, HUB International, and Williams-Sonoma.

They've invested in a variety of businesses, but their core focus is on partnering with high-quality companies that have long-term growth potential.

Leonard Green & Partners has 17 funds, each with its own unique characteristics and investment strategies. One notable fund is Saber Parent Holdings, which closed in November 2020 with an investment amount of $46.45 million.

Here are some of their notable funds and their corresponding investment amounts:

These funds demonstrate Leonard Green & Partners' commitment to investing in high-growth businesses and creating value for their partners.

Leonard Green & Partners has had a significant number of portfolio exits, with 35 recorded exits. Their latest exit was Eyemart Express, acquired by VSP Vision for an undisclosed valuation of $XXM on October 9, 2024.

The company has also had notable exits in the past, including the acquisition of SRS Distribution by The Home Depot for an undisclosed valuation of $XXM on March 28, 2024.

Leonard Green & Partners has also supported companies through initial public offerings (IPOs), such as Life Time's IPO-II on October 7, 2021.

Here are some key details about Leonard Green & Partners' portfolio exits:

It's worth noting that the valuations for some of these exits are not publicly disclosed, as indicated by the "$XXM" notation.

Leonard Green & Partners has made a significant impact through its acquisition activities, with a total of 55 companies acquired. The latest acquisition was GeoStabilization International on September 26, 2024, valued at $XXM.

GeoStabilization International's acquisition was a notable one, with a total funding of $8.02M. This acquisition was categorized under "Other" investment stage and was sourced from 6 different sources.

Another notable acquisition was DuraServ, acquired on June 1, 2024, but the valuation is not publicly disclosed. TenCate Grass was also acquired on December 22, 2023, with an undisclosed valuation.

Here's a list of the top 5 acquisitions made by Leonard Green & Partners:

These acquisitions demonstrate Leonard Green & Partners' commitment to expanding its portfolio through strategic investments.

Leonard Green & Partners is a mega-sized private equity firm that invests in established companies that are leaders in their respective markets. They focus on consumer and business services, consumer products, distribution, media, and retail, with typical transaction values between $500 million and $2 billion.

Their investment strategy is strategic and disciplined, aiming to identify and partner with high-quality businesses poised for long-term growth and value creation. At the core of their investment strategy are several key principles.

Leonard Green & Partners has a substantial Assets Under Management (AUM) of approximately $75 billion, placing them among the larger private equity firms in the industry. They have a rich legacy and a team-oriented philosophy, which fosters spirited dialogue and mutual respect.

The firm has acquired 9 companies in the last 3 years, with their most common sectors for investment being retail (19%) and healthcare services (11%). They have invested in 30 US states and 8 different countries, with their largest disclosed acquisition occurring in 2009 when they acquired IMS Health Holdings for $5.2B.

Their most common investment types include secondary buyout (47%) and going private (14%), with their largest disclosed exit occurring in 2024 when they sold SRS Distribution for $18.3B.

Here are the key sectors and investment types for Leonard Green & Partners:

Leonard Green & Partners has faced occasional criticism over its governance practices, particularly regarding its oversight of portfolio companies.

The firm has been scrutinized for issues related to transparency, accountability, and conflicts of interest in its corporate governance.

LGP has been accused of lacking transparency in its management compensation, which has sparked concerns among investors and stakeholders.

At LGP, they take a patient and long-term view towards investments, prioritizing sustainable growth and value creation over short-term gains. This approach allows portfolio companies the time and resources needed to execute on strategic initiatives.

Their investment horizon typically spans several years, giving companies the breathing room to realize their full potential.

Private equity firms often face scrutiny over their governance practices, including issues related to transparency, accountability, and conflicts of interest.

LGP has faced occasional criticism over its governance practices, particularly regarding its oversight of portfolio companies.

Transparency is a key concern in corporate governance, and LGP has been called out for lacking clarity in its decision-making processes.

The firm's management compensation structure has also been questioned, with some critics arguing it creates conflicts of interest.

LGP's reputation in the industry has generally remained strong, but the firm's governance practices continue to face scrutiny.

Leonard Green & Partners has a significant presence in the private equity industry.

The firm's assets under management (AUM) is a key metric to consider. According to updated regulatory filings, Leonard Green & Partners has $69.7 billion in assets under management as of March 31, 2023.

The interview process at Leonard Green & Partners can be a lengthy one, lasting several weeks unless you're part of on-campus or on-cycle recruiting.

You can expect to go through around 4 to 6 rounds of interviews, with junior investment professionals handling the first few rounds and senior staff supervising the rest.

Here's a breakdown of what you can expect during the interview process:

It's worth noting that Mike, the founder of Growth Equity Interview Guide, has helped thousands of professionals land roles at top investing firms, including Leonard Green & Partners. His guide is a great resource to help you prepare for the types of questions you'll be asked during the interview process.

The interview process can be a lengthy one, lasting several weeks unless you're part of on-campus or on-cycle recruiting. This can give you plenty of time to prepare and showcase your skills.

You can expect to go through 4 to 6 rounds of interviews, with junior investment professionals handling the first few rounds and more senior staff supervising the rest.

Here's a breakdown of what you can expect:

Keep in mind that the type of questions you'll be asked will fall under three main categories: technical/investing, behavioral, and fit questions.

When considering a career at Leonard Green & Partners, salary and compensation are likely top of mind. You can earn around $85,578 per year as an analyst at Leonard Green & Partners.

The pay increases significantly as you move up the career ladder, with associates earning around $113,880 per year.

If you decide to send your application, I highly recommend checking out my Growth Equity Interview Guide first. It's a comprehensive resource that covers financial modeling, case studies, and more, topics that are typically covered during interviews.

Mike, the founder of Growth Equity Interview Guide, has over 10 years of experience in growth/VC investing, having worked at General Atlantic and Velocity. He's also got portfolio company operating experience from his time at Airbnb.

To get a good grasp of the topics covered in the guide, start by checking it out and begin learning today.

Authentic Brands Group has hired Zina Zegans as Executive VP of Lifestyle, overseeing Aeropostale, Brooks Brothers, Eddie Bauer, Forever 21, Lucky Brand, and Nautica.

Zina Zegans has more than two decades of experience in marketing, licensing, branding, and merchandising. She joins Authentic Brands Group after serving as chief brand officer at Nicole Miller.

Authentic Brands Group is currently valued at $20 billion and continues to expand its reach, recently teaming up with Simon Property Group, Brookfield Corp., and Shein to form Catalyst Brands.

The Catalyst Brands partnership will consist of Authentic's lifestyle brands as well as JCPenney. This move is part of Authentic's ongoing efforts to grow and diversify its portfolio.

Leonard Green & Partners is one of the shareholders of Authentic Brands Group, along with other notable investors like BlackRock and Simon Property Group.