Leonard Green Targeting $1.5B for Debut Secondaries Fund

Leonard Green & Partners, a Los Angeles-based private equity investment firm, is reportedly looking to raise $1.5 billion for its first-ever secondaries fund, which will invest in single-asset continuation vehicles.

The firm is in talks with possible anchor investors for the fund, according to Bloomberg, citing an unnamed source who stated the information was disclosed to investors at Leonard Green’s AGM earlier this month.

Continuation funds have grown in prominence in recent years, with GPs employing them to retain high-performing portfolio businesses while returning capital to LPs.

IK Partners recently launched a single-asset continuation fund to support existing portfolio company Yellow Hive, Neuberger Berman led a continuation fund for Lightyear Capital portfolio business AmpliFI, and Blackstone backed a $1.2 billion single-asset continuation fund for Vestar Capital portfolio company Circana.

Last December, Leonard Green launched a $2.2 billion continuation fund for four of its portfolio businesses, supported by AlpInvest Partners.

The firm closed its most recent flagship fund worth approximately $14.7 billion last year. It raised $3.6 billion for its second mid-market Jade fund in 2022.