Leonard Green & Partners

Leonard Green & Partners (LGP) is an American private equity investment firm founded in 1989 and based in Los Angeles.[1] The firm specializes in private equity investments. LGP has invested in over 95 companies since its inception, including Petco and The Container Store.[2][3]

Leonard Green & Partners, L.P.
TypePrivate
IndustryPrivate equity
FoundedJanuary 7, 1989 (1989-01-07)
FounderLeonard I. Green
HeadquartersLos Angeles, California, United States
ProductsLeveraged buyout
AUMUS$70 billion (June 2022)
Number of employees
66
Websiteleonardgreen.com

In June 2023, Leonard Green & Partners were ranked 20th in Private Equity International's PEI 300 ranking of the largest private equity firms in the world.[4]

History

Leonard Green was founded by Leonard I. Green in 1989[5] after separating from Gibbons, Green and van Amerongen Ltd. (Gibbons Green), a bank which he had co-founded in 1969 with Edward Gibbons and Lewis van Amerongen.[6][7] Leonard Green died in 2002, leaving the firm to be run by John G. Danhakl, Peter J. Nolan and Jonathan D. Sokoloff.[5]

The firm's predecessor, Gibbons Green was among the earliest practitioners of the leveraged buyout and management buyout.[6][7] Gibbons Green purchased several companies, including Purex Industries in 1982,[8] Budget Rent a Car from Transamerica in 1986 and Kash n' Karry Food Stores in 1988.[6][7][9] The company planned to purchase Argonaut Group Inc in 1987, but withdrew from the buyout.[10]

The dissolution of Gibbons Green and the formation of Leonard Green & Partners is attributed by some to the failure of two buyouts: Ohio Mattress Company and Sheller-Globe Corporation.[11][12][13]

In 2019, LGP named John Baumer and Evan Hershberg co-heads of the Jade Fund.[14]

In March 2020, partners at LGP committed to plans for a $10 million employee-assistance fund for employees of Leonard Green portfolio companies impacted by the COVID-19 pandemic.[15][16]

Notable investments

In 1996, LGP sold its stake of Thrifty Payless to Rite Aid Corporation.[17]

Between 1997 and 2008, LGP made several acquisitions, including Leslie's Poolmart and Petco.[18][2]

In 2016, LGP closed Green Equity Investors VII, L.P. ("GEI VII"), with $9.6 billion of committed capital.[19] In 2019, LGP raised $14.75 billion for two new funds.[14]

Between 2009 and 2018, LGP's acquisitions included The Container Store and Jo-Ann Stores, and The Shade Store, among others.[3][20][21] In 2012, LGP invested in Shake Shack.[22]

In July 2020, LGP, alongside TPG Capital, invested in WellSky, a health and community care technology company.[23] In November 2020, LGP acquired Service Logic from Warburg Pincus.[24][25]

In February 2021, ProPublica reported on a dispute between LGP and Rhode Islands regulators and legislators over LGP's divestment in Prospect Medical Holdings.[26][27]

References
  1. "Leonard Green & Partners, L.P.: Private Company Information – Bloomberg". www.bloomberg.com. Retrieved 2017-10-03.
  2. "COMPANY NEWS; MANAGEMENT-LED GROUP TO BUY PETCO FOR $505 MILLION". New York Times. 2000-05-18. Retrieved 2013-12-10.
  3. Hughes, Elaine (2007-07-02). "Private firm buys Container Store". Usatoday.Com. Retrieved 2013-12-10.
  4. "PEI 300 | The Largest Private Equity Firms in the World". Private Equity International. 2023-06-01. Retrieved 2023-06-02.
  5. Witkowsky, Christopher (2011-10-06). "Leonard Green changes terms amid fundraise". Private Funds CFO. Retrieved 2019-10-15.
  6. "Gibbons, Green Separation". The New York Times. 1989-05-05. ISSN 0362-4331. Retrieved 2019-12-06.
  7. "Gibbons, Green Adept in Risky Field : Bicoastal Firm Becomes Major Player in Leveraged Buyouts". Los Angeles Times. 1986-09-07. Retrieved 2019-12-06.
  8. "Purex Merger Is Approved". The New York Times. 1982-08-12. Retrieved 2016-04-28.
  9. Staff, Denise L. Smith of The Sentinel. "KASH N' KARRY BUYS MARKETS FROM KROGER". OrlandoSentinel.com. Retrieved 2019-12-06.
  10. Special to the New York TimesPublished: December 23, 1987 (1987-12-23). "COMPANY NEWS; Gibbons Cancels Argonaut Buyout". New York Times. Retrieved 2013-12-10.
  11. Bartlett, Sarah (1989-11-06). "Wall Street's Treacherous Side". New York Times. Retrieved 2013-12-10.
  12. Bartlett, Sarah (1989-10-13). "Filing Discloses Dispute Over Sale of Sheller-Globe". New York Times. Retrieved 2013-12-10.
  13. Published: May 05, 1989 (1989-05-05). "Gibbons, Green Separation". New York Times. Retrieved 2013-12-10.
  14. Bunker, Ted (2019-12-09). "WSJ News Exclusive | Buyout Firm Leonard Green Raises Nearly $15 Billion for Two New Funds". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-02-19.
  15. Witkowsky, Chris (2020-03-19). "Leonard Green executives to form $10m employee-assistance fund". Buyouts. Retrieved 2020-07-21.
  16. "PE Daily: Leonard Green Partners Commit to Employee Assistance Funds | Crude Price Drop Dooms First Reserve Portfolio Company | KKR Defies Chaos". Wall Street Journal. 2020-03-19. ISSN 0099-9660. Retrieved 2020-07-21.
  17. "Rite Aid to buy rival chain - Oct. 14, 1996". money.cnn.com. Retrieved 2020-11-11.
  18. "LESLIE'S POOLMART TAKEN PRIVATE IN $140 MILLION DEAL – New York Times". The New York Times. 1997-06-13. Retrieved 2013-12-10.
  19. "Leonard Green and Partners | Leading private equity investment firm based in Los Angeles". www.leonardgreen.com. Retrieved 2017-09-07.
  20. "Jo-Ann Stores to Be Acquired by Leonard Green & Partners, L.P. for $61.00 Per Share in Cash | Business Wire". www.businesswire.com. 23 December 2010. Retrieved 2016-12-02.
  21. Hirsch, Lauren (2018-08-09). "Private equity giant Leonard Green takes another chance on retail, buying online retailer Shade Store". CNBC. Retrieved 2018-08-17.
  22. Severson, Kim; De La Merced, Michael (29 January 2015). "Shake Shack, Born in a Park, Is Going Public With Big Dreams". DealBook. Archived from the original on 6 October 2019. Retrieved 2020-02-19.
  23. Collins, Leslie (21 July 2020). "WellSky adds Leonard Green as new majority stakeholder". Kansas City Business Journal.
  24. Cutchin, James (5 November 2020). "Leonard Green Acquires Service Logic | Los Angeles Business Journal". Los Angeles Business Journal. Retrieved 2020-11-09.
  25. Bunker, Ted (2020-10-15). "Leonard Green Emerges as Buyer for Warburg's Service Logic". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-11-09.
  26. Elkind, Peter (February 4, 2021). "Rich Investors Stripped Millions From a Hospital Chain and Want to Leave It Behind. A Tiny State Stands in Their Way". ProPublica. Retrieved February 7, 2021.
  27. Elkind, Peter; Burke, Doris (September 30, 2020). "Investors Extracted $400 Million From a Hospital Chain That Sometimes Couldn't Pay for Medical Supplies or Gas for Ambulances". ProPublica. Retrieved February 7, 2021.
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