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Leonard Green & Partners, L.P.

Company type	Private
Industry	Private equity
Founded	January 7, 1989; 35 years ago (1989-01-07)
Founder	Leonard I. Green
Headquarters	Los Angeles, California, United States
Products	Leveraged buyout
AUM	US$77.8 billion (2024)
Number of employees	87 (2024)
Website	leonardgreen.com

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

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.

History

Leonard Green was founded by Leonard I. Green in 1989 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. Leonard Green died in 2002, leaving the firm to be run by John G. Danhakl, Peter J. Nolan and Jonathan D. Sokoloff.

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

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.

In 2007, LGP acquired 17% shares of Whole Foods Market in a PIPE investment deal, "one of the best investments in our firm’s history" according to firm manager Jonathan Sokoloff, because it enabled LGP to acquire J.Crew, BJ’s Wholesale Club and Jo-Ann Stores with the cash made from Whole Foods.

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

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.

Notable investments

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

In February 2021, ProPublica reported on a dispute between LGP and Rhode Island's regulators and legislators over LGP's divestment in Prospect Medical Holdings. Approval for LGP's attempted sale of its 60% stake in Prospect to its co-owners was held up by the Rhode Island attorney general, who, given the dire financial situation LGP was leaving the health system in, conditioned its approval on LGP placing $120-150 million in escrow to back up its two fiscally strained hospitals in the state. LGP had in 2018 initiated a dividend recapitalization which landed it and its investors $658.4 million in dividends and management fees, and the next year sold Prospect's real estate in three states to Medical Properties Trust for $1.386 billion, leaving it with long-term lease obligations of $1.3 billion. In response to the AG's conditions, LGP threatened to shut down the hospitals. The pressure of potential loss of healthcare services led the AG to lower the escrow obligation to $80 million while also requiring LGP to commit over $30 million to the system during the transition.

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. Archived from the original on 2007-07-05. 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.{{cite news}}: CS1 maint: numeric names: authors list (link)
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.{{cite news}}: CS1 maint: numeric names: authors list (link)
14. ^ Dowd, Kevin (2017-03-17). "This day in buyout history: LGP closes one of the most successful pre-crisis megafunds". PitchBook. Retrieved 2024-06-15.
15. ^ 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.
16. Witkowsky, Chris (2020-03-19). "Leonard Green executives to form $10m employee-assistance fund". Buyouts. Retrieved 2020-07-21.
17. "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.
18. "Rite Aid to buy rival chain - Oct. 14, 1996". money.cnn.com. Retrieved 2020-11-11.
19. "LESLIE'S POOLMART TAKEN PRIVATE IN $140 MILLION DEAL – New York Times". The New York Times. 1997-06-13. Retrieved 2013-12-10.
20. Paumgarten, Nick (2009-12-27). "Food Fighter". The New Yorker. ISSN 0028-792X. Retrieved 2024-06-15.
21. "Leonard Green to buy Jo-Ann Stores for $1.6 billion". Reuters. 2010-12-23. Retrieved 2024-06-15.
22. Batt, Rosemary; Appelbaum, Eileen; Katz, Tamar (July 9, 2024). "The Role of Public REITs in Financialization and Industry Restructuring" (PDF). Institute for New Economic Thinking. doi:10.36687/inetwp189. Archived from the original (PDF) on March 31, 2024. Retrieved September 2, 2024.
23. 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.
24. "Pure Gym sold to Leonard Green private equity house". www.ft.com. Retrieved 2024-06-15.
25. 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.
26. Collins, Leslie (21 July 2020). "WellSky adds Leonard Green as new majority stakeholder". Kansas City Business Journal.
27. Cutchin, James (5 November 2020). "Leonard Green Acquires Service Logic | Los Angeles Business Journal". Los Angeles Business Journal. Retrieved 2020-11-09.
28. 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.
29. "Leonard Green and Partners | Leading private equity investment firm based in Los Angeles". www.leonardgreen.com. Retrieved 2017-09-07.
30. 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.
31. 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.
32. Batt, Rosemary; Appelbaum, Eileen; Katz, Tamar (July 9, 2024). "The Role of Public REITs in Financialization and Industry Restructuring" (PDF). Institute for New Economic Thinking. doi:10.36687/inetwp189. Archived from the original (PDF) on March 31, 2024. Retrieved September 2, 2024.

External links

• Official website

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Major shareholders	BlackRock General Atlantic GIC Jamie Salter Leonard Green & Partners Lion Capital
Key people	Jamie Salter (founder & CEO)
Category Commons

• Greater Los Angeles
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• 1989 establishments in California
• American companies established in 1989
• Companies based in Los Angeles
• Conglomerate companies of the United States
• Drexel Burnham Lambert
• Financial services companies based in California
• Financial services companies established in 1989
• Financial services companies of the United States
• Private equity firms of the United States