Levi Pettit brings a multifaceted perspective to the world of Lower-Middle Market Private Equity (LMMPE), informed by his current pursuit of an MBA at Pepperdine Graziadio Business School and his background managing private equity and venture capital portfolios. As a CFA® charterholder with experience spanning commercial banking and investment management, Pettit sees distinctive opportunities in this often-overlooked market segment.
“LMMPE is generally defined as companies generating revenues between $1 – $40 million. This encompasses 99.9% of businesses in the USA,” explains Pettit, whose career path has included roles as an Investment Associate at a single-family office and as a Credit Analyst at Veritex Bank. The Magna Cum Laude graduate of The University of Texas at Dallas, where he earned degrees in Finance and Economics while captaining the men’s golf team, points to significant demographic shifts creating new opportunities.
Drawing from his experience as a two-time Cleveland/Srixon Academic All-America Scholar and his work in enterprise risk management, Pettit identifies both opportunities and challenges in the sector. “52% of families do not want to pass their family business down to their children,” he notes, highlighting a growing pool of potential investments.
Looking ahead, Pettit sees technology as a crucial driver of value creation. “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 former Investment Associate 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 success requires thorough due diligence and strategic manager selection, drawing from his extensive experience in portfolio management and investment analysis. For more, be sure to follow Levi on Twitter.