Firm: Leonard Green & Partners
Fund: Green Equity Investors VI LP
Target: $5 billion
The firm is looking to raise $5 billion and to close by the first quarter of 2012, said the investor, who said that the terms that he saw included standard carry and a 1.5 percent management fee. Executives at Leonard Green declined to comment.
The Los Angeles-based firm has about $9 billion in assets and recently has owned stakes in such high-profile retailers as Neiman Marcus, RiteAid, Whole Foods, the Sports Authority, J. Crew and Petco. In June, the firm bought out BJ’s Wholesale Club for $2.8 billion in partnership with another private equity firm,
Club deals like BJ’s have been a point of concern among some investors. While they see teaming up with other firms as a good way to lessen risks and do bigger deals, they also complain that such syndication dilutes a firm’s distinctiveness and competitive edge.
Over time, however, Leonard Green has proven itself to be a savvy investor in its core retail specialty. According to March 2011 return data from the
The firm’s investors include some of the nation’s largest pension funds, including the
Leonard Green was founded in 1989 by the firm’s namesake, who died in 2002.