Los Angeles Business Journal: Craig Everett Provides Expertise on Private Equity Funds
Leonard Green & Partners, Los Angeles’ largest private equity firm by assets under management, recently closed two funds totaling $14.75 billion. The fundraising for both funds kicked off in May and concluded within seven months. Both funds were oversubscribed and closed at their hard caps.
Craig Everett, professor of finance and director of the Private Capital Markets Project at Graziadio, provided his expertise on megafunds—private equity funds worth $10 billion or more -- and the several factors that are driving these types of funds. “Megafunds allow these investors to invest large sums in a single fund without exceeding their buy-in limit. Another key factor is the growth in deal size. As company valuations rise, private equity firms need larger raises to conduct huge buyouts while still keeping their funds diversified,” said Craig. An economy with ongoing low-interest rate and managers searching for higher yields to meet investor obligations, the market will continue to support megafunds. Read more.