LMMPE: A Growing Force in Private Equity, According to Levi Pettit
As an MBA candidate at Pepperdine Graziadio Business School and former Investment Associate at a single-family office, Levi Pettit has witnessed firsthand the evolution of private equity markets. The CFA® charterholder, who brings deep experience in portfolio management and commercial banking, sees particular promise in the Lower-Middle Market Private Equity (LMMPE) sector.
“LMMPE is generally defined as companies generating revenues between $1 – $40 million. This encompasses 99.9% of businesses in the USA,” notes Pettit, whose background includes roles in enterprise risk management and credit analysis at Veritex Bank. His perspective is informed by years of evaluating investment opportunities and conducting due diligence across various market segments.
The Magna Cum Laude graduate of The University of Texas at Dallas, where Levi captained the men’s golf team and earned recognition as a Cleveland/Srixon Academic All-America Scholar, points to significant demographic shifts creating new opportunities. “52% of families do not want to pass their family business down to their children,” he explains, highlighting a growing pool of potential investments.
Drawing from his experience managing private equity and venture capital portfolios, Pettit identifies artificial intelligence as a key driver of future growth. “Small businesses and public sector entities are not naïve. They know they will have to incorporate artificial intelligence into the infrastructure of their business to survive and grow over the next decade,” he observes.
However, the finance and economics double major emphasizes the importance of careful evaluation. While noting that “LMMPE has historically generated significant returns and is poised to continue to do so,” Pettit advises that “investors should be mindful of liquidity risks generally associated with private equity investments.” Levi Pettit‘s balanced approach, shaped by his diverse financial background, suggests that success in LMMPE requires both strategic vision and careful risk management.