The private equity (PE) industry is mainly involved in buying an ownership interest in private operating companies. PE firms raise large amounts of capital to buy companies, look for companies that are undervalued, acquire them, improve their portfolio, hold them, and sell for a profit as an ‘exit strategy’ after the given holding period. In general, the strategies within the PE firms include growth capital, venture capital, leveraged buyouts [LBO], mezzanine capital, and distressed investments.
Let’s take a look at the biggest Private Equity firms situated in Los Angeles here.
The city of Los Angeles, abbreviated as L.A. is the largest city in California has a diverse economy. It hosts businesses in a range of professional and cultural fields. Also, it is home to many prominent private equity firms as there occurs the flow of big money and it has a fertile landscape for growing startups.
Private equity targets two types of companies here, i.e., established businesses looking for opportunities to stay profitable and new businesses having innovative ideas and products. Though it does not feature huge firms, the PE deals are very much robust here.
Let’s know a few of them along with their specialties here.
Oaktree Capital Group, LLC
Oaktree Capital Group LLC is one of the most well-known PE firms in LA with a total asset of USD 113 billion. The PE firm majorly focuses on the entertainment and media industry like Triton Digital, Townsquare Media, etc. The other targets in the list include healthcare, oil, gas, transportation, and consumer services.
It has large companies like General Maritime, Aleris International, and Almatis Group in their portfolio lists.
It is a Los Angeles-based PE firm that targets about five to six platforms as its inaugural fund. The firm basically focuses on the control buyouts of North American based lower middle-market companies in the sectors related to consumer, industrial, business services, and healthcare with USD 140 million in commitments.
Westhook is determined to create significant value through the systematic growth and improvement of lower middle-market companies. It targets companies that have a solid track record of financial performance, demonstrated the ability to generate cash flow, growth prospects, and defensible margins. The added advantage of Westhook is that, in addition to providing capital, it delivers expertise and resources too for the acquired companies.
Beverly Capital has deep expertise in operational enhancement and growth for lower-middle markets. They assist businesses with exceptional management teams along with operating executives.
The team at Beverly possesses proficiency in navigating difficult or time-sensitive transactions, execute clear strategies, and dedicate resources for accretive ‘add-on’ M&A.
Leonard Green & Partners
Leonard Green and Partners, headquartered at Santa Monica Boulevard has a total asset of more than USD 16 billion. The firm prefers executing leveraged buyouts of established public companies to make them private again.
Some of the portfolio companies include David’s Bridal, Whole Foods Market, Big 5 Sporting Goods, Rite Aid, Petco, and many more.
Highview Capital is a USD 500 million family-office backed PE find in Los Angeles. The firm focuses on companies that are poised to undergo a transformation and drive value through a strategic and operational approach with patient capital.
They invest in middle-market businesses facing critical inflection points and looking forward to transforming. Some of the portfolio companies like American Plastics, GS Foods, National Fire and Safety.
Pacific Coast Capital Partners
PCCP has USD 9.9 billion assets as of 2020. The firm primarily focuses on the real estate industry. In addition to hotels and resorts, they target residential, commercial, and industrial real estate companies as well. They look for developers who are engaged in the revitalization of blighted or distressed areas. Some of the portfolio companies include Otay 311 and Hilton San Jose.
Twist Capital mainly invests in companies that are active in the technology sector. They target technology-oriented companies that require customized capital solutions as per their needs and circumstances. They take a thematic approach while deploying capital through equity instruments and debt.
Vance Street Capital
This PE firm targets companies that are active in medical, defense, aerospace, and industrial markets. The companies that have earned a position in the supply chain is the main focus. They help entrepreneurs to transform as a larger strategic player in the industry. Likewise, they have built more than a hundred companies to their credit in the said industry segments in the last three decades.
There are many PE firms in Los Angeles working in different industrial areas. If you would like to take careers in private equity, it is time to upskill yourself. Given the pandemic situation, most of the PE firms are transforming digitally and look for private equity professionals who are good at basic subjects with an inclination toward technology.
Apart from your academics, get acquainted with basic technical knowledge, upskill yourself, stay updated with the trends to ace your career in private equity.