Santa Monica has emerged as a prime location for private equity firms, attracting industry leaders like Clearlake Capital Group, Brentwood Associates, and Leonard Green & Partners. These firms leverage the city’s strategic proximity to technology hubs, robust talent pool, and favorable business ecosystem. With diverse investment portfolios spanning technology, consumer services, and healthcare, these firms continue to drive innovation and economic growth. Interested professionals can explore this dynamic landscape and connect with like-minded leaders by joining our community at alexejpikovsky.com/community.
Clearlake Capital Group
Investment Style: Clearlake Capital Group focuses on private equity investments in software and technology-enabled services, industrials and consumer sectors. They employ a flexible investment approach, including buyouts, carve-outs, and corporate divestitures, with a focus on operational improvement strategies.
Portfolio Companies: Clearlake’s portfolio includes companies like ConvergeOne (IT services), symplr (healthcare governance, risk management, and compliance solutions), and Provation Medical, Inc. (healthcare software solutions).
Founding Date: 2006
Number of Investment Professionals: Over 100
Assets Under Management: Over $85 billion
Key Investment Professionals:
- Jose E. Feliciano, Co-Founder and Managing Partner: Leads the firm’s investment strategy and oversees the management and operations of the firm.
- Behdad Eghbali, Co-Founder and Managing Partner: Specializes in the firm’s operations, finance, and strategy initiatives.
- Prashant Mehrotra, Partner: Focuses on investments in the software and technology-enabled services sectors.
Recent Exits:
- Ivanti, an IT asset and service management solutions provider, was exited through a strategic sale.
- Clearlake sold Vision Solutions, a provider of data protection and recovery solutions, to Centerbridge Partners.
Recent Investments:
- Invested in Team Technologies, a designer and manufacturer of dental and medical products.
- Acquired Brightly Software, a provider of cloud-based asset management solutions.
Office Locations:
- Headquarters: 233 Wilshire Boulevard, Suite 800, Santa Monica, CA 90401
- Additional Offices: Dallas, Texas; London, United Kingdom, Dublin, Ireland, and Singapore
Website: www.clearlake.com
Quote: “Our operational improvement strategies and sector expertise allow us to drive significant value creation in our portfolio companies.” – Jose E. Feliciano, Co-Founder and Managing Partner
Brentwood Associates
Investment Style: Brentwood Associates focuses on growth equity and buyouts in the consumer and business services sectors. They emphasize partnering with founders and management teams to foster growth and operational excellence.
Portfolio Companies: Brentwood’s portfolio includes companies like Lazy Dog Restaurant & Bar, Soft Surroundings, and Z Gallerie.
Founding Date: 1972
Number of Investment Professionals: Approximately 30
Assets Under Management: Around $6.7 billion
Key Investment Professionals:
- Bill Barnum, Partner: Specializes in consumer investments and leads the firm’s food and beverage investments.
- Eric Reiter, Partner: Focuses on investments in the technology and business services sectors.
- Steve Moore, Partner: Expert in retail and direct-to-consumer businesses.
Recent Exits:
- Sold Credentials Solutions, a provider of transcript management services, to Parchment, a portfolio company of Leeds Equity Partners.
- Exited investments in K-MAC Enterprises, a Taco Bell franchisee, through a sale to an affiliate of Altamont Capital Partners.
Recent Investments:
- Invested in SAXX Underwear, a leading premium underwear and apparel brand.
- Acquired Chicken Salad Chick, a fast-casual restaurant concept.
Office Locations:
- Santa Monica (Headquarters): 11150 Santa Monica Blvd, Suite 1200, Los Angeles, CA 90025
Website: www.brentwood.com
Quote: “Our partnership-driven approach has allowed us to build a legacy of successful growth investments.” – Bill Barnum, Partner
Riordan, Lewis & Haden Equity Partners (RLH)
Investment Style: RLH focuses on investing in high-growth, lower middle-market companies, particularly in the business services, healthcare, and government services sectors. They emphasize long-term partnerships with management teams to drive sustainable growth.
Portfolio Companies: RLH’s portfolio includes organizations such as Secure Mission Solutions, CyberCore Technologies, and LLC, a provider of managed IT services.
Founding Date: 1982
Number of Investment Professionals: About 15
Assets Under Management: Approximately $1.8 billion
Key Investment Professionals:
- J. Christopher Lewis, Managing Partner: Focused on growth equity investments in the business services and healthcare sectors.
- David H. Riley, Partner: Specializes in investments in the technology and education sectors.
- J. Taylor M. Rand, Partner: Leads efforts in government services and healthcare investments.
Recent Exits:
- Sold Secure Mission Solutions to Parsons Corporation, a major engineering, construction, and technical services firm.
- Exited CyberCore Technologies through a strategic acquisition by a private equity-backed firm.
Recent Investments:
- Invested in Pinnacle Treatment Centers, a provider of substance use disorder treatment services.
- Acquired a stake in AMPORTS, an automotive port logistics provider.
Office Locations:
- Headquarters: 12400 Wilshire Blvd, Suite 750, Los Angeles, CA 90025
- Additional Offices: Orange County, California
Website: www.rlhequity.com
Quote: “Our commitment to partnering with strong management teams is at the heart of our investment philosophy.” – J. Christopher Lewis, Managing Partner
Leonard Green & Partners
Investment Style: Leonard Green & Partners targets private equity investments in retail, consumer, and business services sectors. They focus on large-scale buyouts, recapitalizations, and growth equity investments.
Portfolio Companies: Their portfolio includes companies such as Life Time Fitness, Mister Car Wash, and Charter Next Generation.
Founding Date: 1989
Number of Investment Professionals: Over 50
Assets Under Management: Approximately $75 billion
Key Investment Professionals:
- John G. Danhakl, Managing Partner: Leads investments across multiple sectors with a focus on retail and consumer businesses.
- Jonathan Sokoloff, Managing Partner: Specializes in business services and healthcare investments.
- Andrew Goldberg, Partner: Focuses on consumer, distribution, and logistics investments.
Recent Exits:
- Exited investments in Topshop Topman, a fashion retailer, through a sale to ASOS.
- Sold stakes in frutarom, a flavors and ingredients company, to International Flavors & Fragrances Inc.
Recent Investments:
- Invested in Parts Town, a distributor of OEM repair and maintenance parts for the foodservice industry.
- Acquired a significant stake in SRS Distribution, a roofing distribution company.
Office Locations:
- Headquarters: 11111 Santa Monica Blvd, Suite 2000, Los Angeles, CA 90025
Website: www.leonardgreen.com
Quote: “We are deeply committed to helping our portfolio companies grow and succeed by providing strategic guidance and capital support.” – John G. Danhakl, Managing Partner
Caltius Equity Partners
Investment Style: Caltius Equity Partners specializes in middle-market private equity, focusing on business services, healthcare services, and industrial services. Their strategy involves providing equity capital for management buyouts, growth capital investments, and recapitalizations.
Portfolio Companies: Caltius Equity’s portfolio includes companies like MC Sign Company, a provider of signage and lighting services, and ProVest, a process server of legal documents.
Founding Date: 1997
Number of Investment Professionals: Approximately 10
Assets Under Management: Around $500 million
Key Investment Professionals:
- Michael Kane, Managing Director: Focused on investments in healthcare services and business services sectors.
- Jim Upchurch, Managing Director: Specializes in industrial services and business services investments.
Recent Exits:
- Exited investments in MC Sign Company to a strategic acquirer.
- Sold ProVest to a private equity firm.
Recent Investments:
- Invested in Health Advocates, a revenue cycle management company.
- Acquired a stake in Griffin Dewatering, a provider of groundwater control services.
Office Locations:
- Headquarters: 11766 Wilshire Blvd, Suite 850, Los Angeles, CA 90025
Website: www.caltius.com
Quote: “Our commitment to partnership and collaboration with management teams is key to our investment strategy.” – Michael Kane, Managing Director
OpenGate Capital
Investment Style: OpenGate Capital specializes in acquiring lower middle-market businesses across North America and Europe. They focus on driving operational improvements and strategic growth initiatives in portfolio companies.
Portfolio Companies: OpenGate’s portfolio includes companies such as EverZinc, a producer of specialty zinc materials, and Bois & Matériaux, a French building materials distributor.
Founding Date: 2005
Number of Investment Professionals: Over 30
Assets Under Management: Approximately $1 billion
Key Investment Professionals:
- Andrew Nikou, Founder and Managing Partner: Leads the firm’s investment strategy and oversees global operations.
- Fabien Marcantetti, Partner: Focuses on European investments and operational improvements.
- Julian L. Francis, Partner: Specializes in North American investments and growth strategies.
Recent Exits:
- Exited investments in NAKAN, a leader in the production of polymer compounds, to Westlake Chemical Corporation.
- Sold Zodiac Milpro, a manufacturer of inflatable and semi-rigid boats, to a strategic acquirer.
Recent Investments:
- Acquired SMAC, a leading manufacturer of waterproofing solutions for the construction sector.
- Invested in Kongsberg Precision Cutting Systems, a designer and manufacturer of precision cutting solutions.
Office Locations:
- Headquarters: 10250 Constellation Blvd, Suite 2700, Los Angeles, CA 90067
- Additional Offices: Paris, France
Website: www.opengatecapital.com
Quote: “Our hands-on operational approach is central to transforming our portfolio companies into industry leaders.” – Andrew Nikou, Founder and Managing Partner
Vance Street Capital
Investment Style: Vance Street Capital focuses on lower middle-market investments in the aerospace, defense, industrial, and medical sectors. They emphasize operational excellence and strategic growth initiatives to enhance value in portfolio companies.
Portfolio Companies: Vance Street’s portfolio includes companies such as Applied Plastics Co. Inc., a provider of high-performance coatings for medical devices, and Micronics, a provider of filtration products and solutions.
Founding Date: 2007
Number of Investment Professionals: Around 20
Assets Under Management: Approximately $1.5 billion
Key Investment Professionals:
- Brian Martin, Managing Partner: Focuses on investments in the aerospace and defense sectors.
- Richard Crowell, Managing Partner: Specializes in industrial and medical investments.
Recent Exits:
- Exited investments in FMI, a provider of composite aerospace components, to Ducommun Incorporated.
- Sold Micronics to a strategic acquirer in the filtration industry.
Recent Investments:
- Acquired Applied Plastics Co. Inc. to bolster its medical coatings capabilities.
- Invested in Wytech Industries, a manufacturer of precision medical devices.
Office Locations:
- Headquarters: 11166 Washington Blvd, Suite 305, Culver City, CA 90232
Website: www.vancestreetcapital.com
Quote: “By focusing on operational excellence, we help our portfolio companies achieve their full potential.” – Brian Martin, Managing Partner
Shamrock Capital Advisors
Investment Style: Shamrock Capital Advisors specializes in media, entertainment, and communications investments, focusing on growth equity, buyouts, and corporate partnerships.
Portfolio Companies: Their portfolio includes companies such as Excel Sports Management, FanDuel, and Screenvision Media.
Founding Date: 1978
Number of Investment Professionals: Over 20
Assets Under Management: Approximately $2 billion
Key Investment Professionals:
- Stephen Evans, Partner: Leads investments in media and entertainment sectors.
- Laura Held, Partner: Specializes in communications and digital media investments.
Recent Exits:
- Exited investments in Learfield IMG College, a collegiate sports marketing company, to Silver Lake Partners.
- Sold Giant Creative/Strategy, a healthcare communications agency, to W2O Group.
Recent Investments:
- Invested in Boardwalk Pictures, a producer of premium non-fiction and unscripted content.
- Acquired a minority stake in High Times, a leading cannabis lifestyle brand.
Office Locations:
- Headquarters: 1100 Glendon Ave, Suite 1200, Los Angeles, CA 90024
Website: www.shamrockcap.com
Quote: “Our focus on media and entertainment gives us a unique vantage point in an evolving industry landscape.” – Stephen Evans, Partner
Palladium Equity Partners
Investment Style: Palladium Equity Partners focuses on middle-market buyout equity investments, targeting companies in the food, industrial, healthcare, and services sectors, especially those with a focus on U.S. Hispanic markets.
Portfolio Companies: Their portfolio includes companies like Del Real Foods, a ready-to-eat Hispanic food brand, and Quirch Foods, a distributor and exporter of food products.
Founding Date: 1997
Number of Investment Professionals: Over 40
Assets Under Management: Approximately $3 billion
Key Investment Professionals:
- Marcos Rodriguez, Founder and Managing Partner: Focuses on investments in the food and consumer sectors.
- Caleb Clark, Partner: Specializes in healthcare and industrial investments.
Recent Exits:
- Exited investments in Sahale Snacks, a nut and fruit snack brand, to The J.M. Smucker Company.
- Sold Wise Foods, a snack food company, to Arca Continental.
Recent Investments:
- Acquired a stake in Spice World, a supplier of garlic and other spice products.
- Invested in Fora Financial, a provider of small business capital solutions.
Office Locations:
- Headquarters: 1270 Avenue of the Americas, Suite 2200, New York, NY 10020
- Additional Offices: Los Angeles, California
Website: www.palladiumequity.com
Quote: “Our strategic focus on the U.S. Hispanic market provides unique growth opportunities for our portfolio companies.” – Marcos Rodriguez, Founder and Managing Partner
Waterton
Investment Style: Waterton is a real estate investment and management firm specializing in multifamily, senior living, and hospitality properties across the United States. They focus on value-add and opportunistic investments to enhance asset performance.
Portfolio Companies: Waterton manages a diverse portfolio of residential properties, including luxury apartment communities and senior living facilities.
Founding Date: 1995
Number of Investment Professionals: Over 200
Assets Under Management: Approximately $7.5 billion
Key Investment Professionals:
- David Schwartz, Co-Founder and CEO: Oversees the firm’s strategic direction and investment strategy.
- Peter Vilim, Co-Founder and Chairman: Focuses on the firm’s multifamily investment and management operations.
Recent Exits:
- Sold several multifamily properties in major U.S. markets as part of a strategic portfolio realignment.
- Exited investments in senior living communities to a large healthcare REIT.
Recent Investments:
- Acquired luxury apartment communities in key urban markets across the United States.
- Invested in senior living facilities to expand their portfolio in this growing sector.
Office Locations:
- Headquarters: 191 North Wacker Drive, Suite 2500, Chicago, IL 60606
- Additional Offices: Los Angeles, California
Website: www.waterton.com
Quote: “Our hands-on management approach and focus on enhancing asset value set us apart in the real estate investment sector.” – David Schwartz, Co-Founder and CEO
Conclusion
Santa Monica’s private equity landscape reflects a dynamic ecosystem of strategic investment and growth potential. As firms continue to evolve, their impact on local and regional economic development remains profound. Understanding these nuanced dynamics can provide valuable insights into how capital transforms industries and creates opportunities.
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