Los Angeles-based buyout firm Leonard Green & Partners has closed its seventh flagship vehicle on $9.6 billion, exceeding its target and reaching its $9.1 billion third-party investor hard-cap. Green Equity Investors VII includes a $500 million commitment from partners at the firm, it said.
Fund VII is 54 percent larger than its predecessor, which closed on $6.25 billion in 2012, and had an initial target of $8.5 billion, according to PEI Research & Analytics. The firm did not use a placement agent, it said.
Investors in GEI VII span 18 countries and include pension funds, sovereign wealth funds, insurance companies, foundations, family offices and financial institutions, the firm said.
Among them are the Los Angeles City Employees’ Retirement System, which committed $25 million, the Teachers’ Retirement System of the State of Illinois, which committed $200 million in December, the state of Oregon, which committed $250 million, and a $100 million commitment from the New Mexico Statement Investment Council, as reported by Private Equity International.
The key-man clause includes managing partners John Danhakl and Jonathan Sokoloff, and partners John Baumer and Jonathan Seiffer.
Like previous vehicles, the new fund will focus on consumer and retail, healthcare and wellness, and business and consumer services, the firm said.
It will invest mainly in North American companies with an enterprise value of between $500 million and $5 billion, and plans to write equity cheques of between $250 million and $750 million for up to 20 investments.