Levine Leichtman Capital Partners (LLCP) announced the closing of a $575 million multi-asset continuation fund transaction. And LLCP LMM Acquisition Fund, L.P. was formed to acquire interests in three portfolio companies: Blue Ridge Associates, Milton Industries and Resolution Economics – from LLCP Lower Middle Market Fund, L.P. (LMM II).
The deal was designed to provide more time and capital to assist each portfolio company in achieving its growth potential while offering a liquidity option to LMM II LPs interested in crystallizing performance across the portfolio. And LMM II will be fully realized upon completion of the deal.
The three assets in the LLCP Continuation Fund (CV Portfolio) include:
1.) Blue Ridge Associates, a leading provider of technology-enhanced solutions and services for the administration and recordkeeping of ESOPs and associated 401(k) plans. And the company’s comprehensive service offerings and highly experienced professional administrators address the complex and mission-critical needs of ESOP and other qualified retirement plans, which have provided the company with a reputation as one of the highest-quality service providers in the market.
2.) Milton Industries, a leading provider of highly-engineered products for pneumatic and hydraulic applications across diverse end markets, including vehicle services, industrial maintenance, repair and operation (MRO), military/aviation, agriculture, and other sectors. The company has thousands of customers and a broad portfolio of products, including couplers, gauges, chucks, blow guns, filters, regulators, lubricators, hoses and fittings, specialty tools, and fluid management equipment.
3.) Resolution Economics is a specialty consulting firm that provides economic and statistical analysis, expert testimony, and other compliance services to leading law firms and corporations in labor & employment and commercial litigation matters. The company specializes in highly complex class action lawsuits and, as such, employs a highly specialized workforce.
Baird served as exclusive financial advisor to LLCP and Kirkland & Ellis provided legal counsel to LLCP on the transaction. And Hamilton Lane acted as lead investor and was supported by a diverse syndicate of institutional investors.
KEY QUOTES:
“We are appreciative of Hamilton Lane’s support and are excited to continue our partnership with the management teams of Blue Ridge Associates, Milton Industries, and Resolution Economics. We’re proud of the success each of these companies has achieved and are strong believers in their future prospects. With this transaction, we are happy to deliver full liquidity on an accelerated basis to our investors and fully-realize LMM II.”
– Michael Weinberg, Managing Partner, and Andrew Schwartz, Partner, at LLCP
“We are excited to support these high-quality LLCP portfolio companies in their next stage of growth. This transaction highlights Hamilton Lane’s unique value as a strategic partner, providing scale, expertise and experience to facilitate compelling solutions for GPs and LPs alike.”
– Ryan Smith, Managing Director on the Secondary Investment Team at Hamilton Lane
