Leonard Green & Partners

Leonard Green & Partners, L.P.

Company type	Private
Industry	Private equity
Founded	1989 (1989)
Founder	Leonard I. Green
Headquarters	Los Angeles , United States
Area served	United States
Key people	John G. Danhakl, Peter J. Nolan, Jonathan D. Sokoloff, John Baumer, Evan Hershberg
Products	Private equity investments
Website	www.leonardgreen.com

Leonard Green & Partners, L.P. (LGP) is a United States-based private equity investment company established in 1989 and headquartered in Los Angeles. The firm focuses on private equity ventures and has invested in more than 95 businesses, among them Petco and The Container Store.

As of June 2024, Leonard Green & Partners was ranked 18th on Private Equity International's PEI 300 list, which ranks the largest private equity firms globally.

History

Leonard Green & Partners was launched by Leonard I. Green in 1989 following his departure from Gibbons, Green and van Amerongen Ltd. (Gibbons Green), a banking institution he co-founded in 1969. After Leonard Green’s passing in 2002, leadership transitioned to John G. Danhakl, Peter J. Nolan, and Jonathan D. Sokoloff.

Gibbons Green was an early adopter of leveraged and management buyout strategies, successfully acquiring firms such as Purex Industries (1982), Budget Rent a Car (1986), and Kash n' Karry Food Stores (1988). The evolution into Leonard Green & Partners came after encountering setbacks with unsuccessful buyouts of Ohio Mattress Company and Sheller-Globe Corporation.

In 2007, LGP executed a significant PIPE investment by purchasing a 17% stake in Whole Foods Market. Jonathan Sokoloff, a managing partner, described this as "one of the best investments in our firm’s history," facilitating subsequent acquisitions including J.Crew, BJ's Wholesale Club, and Jo-Ann Stores.

In 2019, John Baumer and Evan Hershberg were appointed as co-leaders of the Jade Fund. By March 2020, LGP partners had pledged $10 million to aid employees of portfolio companies impacted by the COVID-19 pandemic.

In March 2025, Leonard Green & Partners earned PE Hub's Comprehensive Trade of the Year Award for orchestrating the $18.25 billion sale of SRS to Home Depot.

In April 2025, Crozer Health—acquired through Prospect Medical Holdings by Leonard Green & Partners—was shut down after failing to secure a buyer, leading to 2,600 job losses. The Pennsylvania Attorney General attributed the closure largely to Leonard Green’s operational methods, including a sale-leaseback approach that created unsustainable lease commitments and debt burdens. In 2024, Prospect faced litigation for breach of contract amid allegations it diverted over $450 million to private investors and neglected to fully fund pension plans for retirees.

Notable investments

Company	Year acquired	Shares	Year divested	Sold to
Thrifty Payless		43%, jointly held with Kmart	1996	Rite Aid Corporation
Leslie's Poolmart	1997
Petco	2000
The Container Store	2007
Whole Foods Market	2009	17% (PIPE transaction)	2011: sold 11 million shares (under half of LGP's holding)
Jo-Ann Stores	2010
Prospect Medical Holdings	2010	61.3%	2021
Shake Shack	2012
PureGym	2017
The Shade Store	2018
WellSky (health tech)	2020	co-owned with TPG Capital
Service Logic

In 2016, LGP completed fundraising for Green Equity Investors VII, L.P. ("GEI VII"), securing $9.6 billion in committed capital. By 2019, the firm raised $14.75 billion across two new funds.

In February 2021, according to ProPublica, Leonard Green & Partners became involved in a regulatory dispute with Rhode Island authorities concerning its exit from Prospect Medical Holdings. The state's attorney general postponed approval of LGP’s sale of its majority stake (60%), mandating an escrow between $120 million and $150 million to support two financially distressed hospitals. Previously, LGP had extracted $658.4 million through dividends and fees via a dividend recapitalization in 2018 and sold Prospect’s real estate assets for $1.386 billion in 2019, which resulted in $1.3 billion in lease liabilities. When faced with escrow requirements, LGP threatened hospital closures. Eventually, the attorney general lowered the escrow amount to $80 million and required an additional $30 million commitment during the transition period to maintain healthcare services.