Levine Leichtman Seeks $1.5B For New Fund

Among the new fund’s investors is the Dallas Police and Fire Pension System, which just committed $25 million. In 2011, Dallas Police and Fire committed $25 million to another of the firm’s funds, the Levine Leichtman Capital Partners Deep Value II LP.

Overall, Levine Leichtman manages about $5 billion private equity capital, and also makes investments in distressed debt and leveraged loans. The firm’s flagship vehicles make investments in companies that have sales between $100 million and $750 million, according to the firm’s Web site.

Levine Leichtman is currently investing from several funds, including the $225 million Levine Leichtman Capital Partners SBIC Fund LP, a 2011-vintage small-company fund that recently made an investment in Senior Helpers, a franchise firm that offers professional in-home care for the elderly.

Other funds currently making investments include the firm’s Deep Value Fund II, a 2012-vintage vehicle that raised $170 million and focuses on buyouts and distressed debt. The firm is also investing from the 2007 vintage Levine Leichtman Capital California Growth Fund, a $100 million fund that focuses on small companies in the Golden State.

The firm’s previous flagship fund, the 2008-vintage Levine Leichtman Capital Partners IV LP, raised $1.2 billion and was performing strongly, according to June 2012 data from the California Public Employees’ Retirement System, which invested $75 million in the fund. According to CalPERS, Fund IV was returning a 25 percent net IRR and a 1.5x return multiple.

Other investors in Fund IV include Dallas Police and Fire, the New Mexico State Investment Council and the New York State Common Retirement Fund, according to the Thomson One private equity database.

Founded in 1984 by Arthur Levine and Lauren Leichtman, the firm also has offices Dallas, Chicago, New York and London.

Calls made to the firm’s chief counsel were not immediately returned.