Los Angeles has emerged as a dynamic hub for private equity firms, attracting top-tier investment groups like Ares Management Corporation, Platinum Equity, and Leonard Green & Partners. These firms leverage the city’s robust tech ecosystem, diverse industry landscape, and strategic West Coast positioning to drive innovative investment strategies. With a concentration of talent and capital, Los Angeles provides an ideal environment for private equity growth. Interested in connecting with industry leaders? Join our community at alexejpikovsky.com/community.
Ares Management Corporation
Investment Style: Ares Management Corporation focuses on managing alternative assets with a specialization in credit, private equity, and real estate. Their investment approach seeks long-term value creation through a disciplined investment process and leveraging their extensive network.
Portfolio Companies: Ares has a diverse portfolio that includes companies such as Press Ganey (healthcare performance improvement), Neiman Marcus Group (luxury retail), and Serta Simmons Bedding (bedding products).
Founding Date: 1997
Number of Investment Professionals: Over 1,450 across the firm’s globally integrated platform.
Assets Under Management: Approximately $428 billion
Key Investment Professionals:
- Michael Arougheti, CEO & President: Arougheti has been instrumental in driving the firm’s strategic initiatives and expanding its global footprint.
- David Kaplan, Co-Founder & Director: Kaplan has played a critical role in shaping Ares’ investment strategies and managing key portfolio investments.
- Bennett Rosenthal, Co-Founder & Director: Rosenthal has made significant contributions to the firm’s growth, particularly in the private equity sector.
Recent Exits: Ares recently exited its investment in Neiman Marcus Group through a restructuring transaction that resulted in significant value realization.
Recent Acquisitions: Ares acquired a significant stake in the real estate investment trust Black Creek Group to expand its industrial real estate portfolio.
Office Locations:
- Los Angeles (Headquarters): 2000 Avenue of the Stars, 12th Floor, Los Angeles, CA 90067
- Additional Offices: New York, London, Chicago, Frankfurt, Hong Kong, Shanghai, Tokyo, and Sydney
Website: www.aresmgmt.com
Quote: “Ares is differentiated by our ability to deliver a broad range of alternative investment options to our clients, underpinned by our robust risk management and integrated platform.” – Michael Arougheti, CEO & President
Platinum Equity
Investment Style: Platinum Equity specializes in mergers, acquisitions, and operations, focusing on complex carve-outs, public-to-private transactions, and special situations. Their investment approach centers on operational improvements and driving value creation through active management and transformation.
Portfolio Companies: Platinum Equity’s portfolio includes Vertiv (critical digital infrastructure provider), Ingram Micro (technology distributor), and PAE (defense contractor).
Founding Date: 1995
Number of Investment Professionals: Over 300 professionals globally
Assets Under Management: Approximately $36 billion
Key Investment Professionals:
- Tom Gores, Chairman & CEO: Gores has led the firm’s growth through strategic acquisitions and operational improvements across diverse industries.
- Jacob Kotzubei, Partner: Kotzubei focuses on deal sourcing and execution, contributing significantly to portfolio company transformations.
- Matthew Louie, Managing Director: Louie plays a key role in structuring and executing transactions across multiple sectors.
Recent Exits: Platinum Equity successfully exited PAE through a sale to Amentum in a transaction that highlighted the firm’s operational enhancement capabilities.
Recent Acquisitions: The firm completed the acquisition of Solenis, a leading global producer of specialty chemicals, strengthening its chemicals portfolio.
Office Locations:
- Los Angeles (Headquarters): 360 North Crescent Drive, Beverly Hills, CA 90210
- Additional Offices: New York, Boston, Greenwich, London, and Singapore
Website: www.platinumequity.com
Quote: “Our hands-on approach and focus on operational transformation are what set Platinum Equity apart in the competitive landscape of private equity.” – Tom Gores, Chairman & CEO
Leonard Green & Partners
Investment Style: Leonard Green & Partners focuses on private equity investments in established companies in the consumer, healthcare, business services, and retail sectors. Their approach is to partner with management teams to drive growth and operational improvements.
Portfolio Companies: Leonard Green & Partners’ portfolio includes companies such as J. Crew (retail apparel), Shake Shack (fast-casual restaurants), and Mister Car Wash (car wash services).
Founding Date: 1989
Number of Investment Professionals: Over 85 professionals
Assets Under Management: Approximately $75 billion
Key Investment Professionals:
- John G. Danhakl, Managing Partner: Danhakl has been essential in developing the firm’s strategic vision and leading major transactions.
- Jonathan Sokoloff, Managing Partner: Sokoloff focuses on driving growth and value creation for the firm’s portfolio companies.
- Andrew Goldberg, Partner: Goldberg contributes to the firm’s investment strategies and development of portfolio companies.
Recent Exits: Leonard Green & Partners recently exited its investment in The Container Store through a secondary transaction, highlighting successful value creation.
Recent Acquisitions: The firm acquired an equity stake in SRS Distribution, a leading distributor of roofing products, to expand its presence in the building products sector.
Office Locations:
- Los Angeles (Headquarters): 11111 Santa Monica Blvd, Suite 2000, Los Angeles, CA 90025
Website: www.leonardgreen.com
Quote: “Our success at Leonard Green is driven by our deep industry expertise and commitment to partnering with great management teams to build lasting value.” – John G. Danhakl, Managing Partner
Oaktree Capital Management
Investment Style: Oaktree Capital Management specializes in alternative investment strategies, with a focus on high-yield bonds, distressed debt, real estate, and private equity. They emphasize a risk-controlled approach and opportunistic investing to generate attractive returns.
Portfolio Companies: Oaktree’s portfolio includes companies such as Star Bulk Carriers (shipping), First Aviation Services (aviation services), and Redwire (space infrastructure).
Founding Date: 1995
Number of Investment Professionals: Over 1,000 globally
Assets Under Management: Approximately $170 billion
Key Investment Professionals:
- Howard Marks, Co-Chairman: Marks has been a pivotal figure in shaping the firm’s investment philosophy and driving its growth globally.
- Bruce Karsh, Co-Chairman & CIO: Karsh is responsible for the firm’s investment strategies and managing key portfolio investments.
- Jay Wintrob, CEO: Wintrob oversees the firm’s strategic direction and operational execution.
Recent Exits: Oaktree exited an investment in Redwire through a successful public listing, showcasing its value enhancement capabilities.
Recent Acquisitions: The firm acquired a significant stake in Star Bulk Carriers to strengthen its position in the shipping industry.
Office Locations:
- Los Angeles (Headquarters): 333 South Grand Ave, 28th Floor, Los Angeles, CA 90071
- Additional Offices: New York, London, Hong Kong, Tokyo, and Luxembourg
Website: www.oaktreecapital.com
Quote: “At Oaktree, our disciplined approach to risk management and opportunistic investing is what truly differentiates us in the market.” – Howard Marks, Co-Chairman
Crescent Capital Group
Investment Style: Crescent Capital Group focuses on senior and junior debt securities with an emphasis on originating, structuring, and investing in secured debt, high-yield bonds, and special situations.
Portfolio Companies: Crescent Capital manages investments in a broad range of industries, including healthcare, technology, and industrials.
Founding Date: 1991
Number of Investment Professionals: Over 180 globally
Assets Under Management: Approximately $41 billion
Key Investment Professionals:
- Mark Attanasio, Co-Founder & Managing Partner: Attanasio has been key in developing the firm’s strategic vision and investment approach.
- Jean-Marc Chapus, Co-Founder & Managing Partner: Chapus focuses on deal sourcing and execution, contributing significantly to portfolio growth.
- Michael J. LaMotte, Managing Director: LaMotte plays a vital role in portfolio management and investment strategy formulation.
Recent Exits: Crescent Capital successfully exited its investment in a leading healthcare services company, realizing substantial returns for its investors.
Recent Acquisitions: The firm participated in a financing round for a technology company, enhancing its presence in the tech sector.
Office Locations:
- Los Angeles (Headquarters): 11100 Santa Monica Blvd, Suite 2000, Los Angeles, CA 90025
- Additional Offices: New York, Boston, and London
Website: www.crescentcap.com
Quote: “Crescent Capital’s strength lies in our ability to craft customized financing solutions that align with the unique needs of each of our portfolio companies.” – Mark Attanasio, Co-Founder & Managing Partner
Ridgewood Capital
Investment Style: Ridgewood Capital specializes in providing growth capital to technology companies, with a focus on energy technology, industrial technology, and information technology sectors.
Portfolio Companies: Ridgewood’s portfolio includes companies in technology-driven industries such as energy efficiency, advanced materials, and IT services.
Founding Date: 1982
Number of Investment Professionals: Over 20
Assets Under Management: Approximately $4 billion
Key Investment Professionals:
- Robert Gold, Managing Partner: Gold has extensive experience in technology investments and drives the firm’s strategic initiatives.
- Ronald C. Klein, Managing Partner: Klein focuses on sourcing and managing technology investments, contributing to the growth of the portfolio.
- James F. Weiss, Managing Director: Weiss plays a key role in evaluating and executing technology investment opportunities.
Recent Exits: Ridgewood successfully exited an investment in a leading industrial technology firm through a strategic sale.
Recent Acquisitions: The firm invested in a cutting-edge energy technology company to expand its clean energy portfolio.
Office Locations:
- Los Angeles (Headquarters): 333 South Grand Ave, Suite 4050, Los Angeles, CA 90071
Website: www.ridgewoodcapital.com
Quote: “Our commitment to investing in leading technology companies allows us to foster innovation and drive transformational growth.” – Robert Gold, Managing Partner
Caltius Capital Management
Investment Style: Caltius Capital Management focuses on mezzanine capital and private equity investments in lower to middle-market companies across various sectors including healthcare, business services, and industrials.
Portfolio Companies: Caltius has invested in diversified industries with a focus on providing flexible capital solutions.
Founding Date: 1997
Number of Investment Professionals: Over 25
Assets Under Management: Approximately $1 billion
Key Investment Professionals:
- Jim Upchurch, President & CEO: Upchurch has been pivotal in the firm’s growth and its strategic investment approach.
- Michael Kane, Managing Director: Kane plays a significant role in investment sourcing and portfolio management.
- Dave Rodriguez, Managing Director: Rodriguez is instrumental in executing transactions and managing investments.
Recent Exits: Caltius successfully exited a healthcare investment, achieving significant returns through a strategic sale.
Recent Acquisitions: The firm provided mezzanine financing to a growing industrial services company to fuel its expansion plans.
Office Locations:
- Los Angeles (Headquarters): 11766 Wilshire Blvd, Suite 850, Los Angeles, CA 90025
Website: www.caltius.com
Quote: “Caltius Capital’s ability to structure creative financing solutions allows us to support the unique growth trajectories of our portfolio companies.” – Jim Upchurch, President & CEO
OpenGate Capital
Investment Style: OpenGate Capital specializes in acquiring and optimizing lower middle-market and special situation businesses across North America and Europe. They focus on operational improvements and strategic enhancements to drive value creation.
Portfolio Companies: Their portfolio includes companies like Duraco Specialty Tapes (adhesive solutions), EverZinc (zinc specialty chemicals), and SMAC (vibration and noise control).
Founding Date: 2005
Number of Investment Professionals: Over 100 globally
Assets Under Management: Approximately $2 billion
Key Investment Professionals:
- Andrew Nikou, Founder & CEO: Nikou drives OpenGate’s strategic direction and oversees the firm’s investment activities.
- Julian Oakley, Partner: Oakley focuses on sourcing and executing investment opportunities, particularly in Europe.
- Maxime Couturier, Managing Director: Couturier is responsible for operational improvements and value creation in portfolio companies.
Recent Exits: OpenGate successfully exited its investment in EverZinc through a sale to an international chemical company.
Recent Acquisitions: The firm acquired Kongsberg Precision Cutting Systems to enhance its industrial portfolio.
Office Locations:
- Los Angeles (Headquarters): 10250 Constellation Blvd, Suite 2810, Los Angeles, CA 90067
- Additional Offices: Paris
Website: www.opengatecapital.com
Quote: “Our focus on operational excellence and strategic value enhancement is what empowers OpenGate to transform our portfolio companies.” – Andrew Nikou, Founder & CEO
Palladium Equity Partners
Investment Style: Palladium Equity Partners focuses on investing in middle-market companies with a strong emphasis on businesses that can benefit from their expertise in operations and growth strategy, particularly within the U.S. Hispanic market.
Portfolio Companies: Their portfolio includes companies such as GoodWest Industries (dispensed beverage solutions), Quirch Foods (food distribution), and Del Real Foods (Hispanic prepared foods).
Founding Date: 1997
Number of Investment Professionals: Over 40
Assets Under Management: Approximately $3 billion
Key Investment Professionals:
- Marcos A. Rodriguez, Chairman & CEO: Rodriguez oversees strategic direction and investment strategy for Palladium.
- David Perez, Managing Director: Perez leads the firm’s efforts in identifying and managing key investments.
- Chris Allen, Managing Director: Allen is involved in sourcing and executing transactions across multiple sectors.
Recent Exits: Palladium exited its investment in a leading beverage solutions company, achieving growth and operational enhancements prior to sale.
Recent Acquisitions: The firm acquired a majority interest in Del Real Foods to leverage growth opportunities within the Hispanic food segment.
Office Locations:
- Los Angeles (Headquarters): 10100 Santa Monica Blvd, Suite 100, Los Angeles, CA 90067
- Additional Offices: New York
Website: www.palladiumequity.com
Quote: “At Palladium, our unique focus on the Hispanic market and operational value-add strategies differentiate our approach to private equity investing.” – Marcos A. Rodriguez, Chairman & CEO
DFJ Growth
Investment Style: DFJ Growth provides growth capital to transformative technology companies, focusing on sectors like enterprise software, consumer internet, and healthtech. They support companies through expansion stages with deep industry insights and operational expertise.
Portfolio Companies: DFJ Growth’s portfolio includes SpaceX (aerospace manufacturer), Tesla (electric vehicles), and Box (cloud content management).
Founding Date: 2006
Number of Investment Professionals: Over 30
Assets Under Management: Approximately $2 billion
Key Investment Professionals:
- Barry Schuler, Partner: Schuler has been instrumental in driving the firm’s investment strategies within the tech sector.
- Randy Glein, Partner: Glein focuses on identifying high-potential tech companies for growth investments.
- Emily Melton, Partner: Melton contributes to strategic investment decisions and supports portfolio company growth.
Recent Exits: DFJ Growth successfully exited its investment in SolarCity through a merger with Tesla, capitalizing on synergies and market opportunities.
Recent Acquisitions: The firm participated in a funding round for a pioneering artificial intelligence company to enhance its tech portfolio.
Office Locations:
- Los Angeles (Headquarters): 2882 Sand Hill Road, Suite 150, Menlo Park, CA 94025
Website: www.dfjgrowth.com
Quote: “Our deep ties to Silicon Valley and unwavering commitment to transformational tech are what make DFJ Growth a leader in growth capital.” – Barry Schuler, Partner
Conclusion
Los Angeles’s private equity landscape continues to evolve, presenting dynamic opportunities for strategic investors. The city’s diverse economic ecosystem provides a robust platform for PE firms to drive value and transform industries. As the market matures, firms are increasingly focusing on targeted sectors like technology, healthcare, and entertainment.
For those seeking deeper insights into successful business exits and strategic acquisitions, I invite you to subscribe to my YouTube channel at @alexejpikovsky. Each week, I share practical perspectives on navigating complex exit strategies and understanding the nuanced world of business transactions.