As an Investment Associate turned MBA candidate at Pepperdine Graziadio Business School, Levi Pettit sees unique potential in the Lower-Middle Market Private Equity (LMMPE) space. The CFA® charterholder’s perspective is shaped by his experience managing private equity and venture capital portfolios at a single-family office, combined with his background in commercial banking and risk management.
“LMMPE is generally defined as companies generating revenues between $1 – $40 million. This encompasses 99.9% of businesses in the USA,” explains Pettit, who developed his analytical expertise as both an Enterprise Risk Management Analyst and 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, sees particular value in the sector’s structural advantages.
.@GraziadioSchool MBA candidate Levi Pettit shared his career journey in investment with @cyprusmail, highlighting how a commitment to continual improvement has driven both his education and career.https://t.co/VJqD3sTyvV
— Pepperdine News (@Pepperdine_News) November 12, 2024
Drawing from his experience as a two-time Cleveland/Srixon Academic All-America Scholar and former golf team captain, Pettit emphasizes the strategic nature of the opportunity. Large funds, he notes, find it “more efficient and cost-effective at making 10-20 large acquisitions per fund,” creating space for LMMPE firms to target smaller, high-potential investments.
The technological transformation of small businesses presents another significant opportunity, according to Pettit. “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, Pettit’s background in risk management informs his balanced approach. While acknowledging that “LMMPE has historically generated significant returns and is poised to continue to do so,” he emphasizes that investors must carefully evaluate managers and strategies, drawing from his extensive experience in portfolio management and investment analysis.