Investment expert Levi Pettit, whose career spans from commercial banking to private equity portfolio management, sees transformative opportunities in the Lower-Middle Market Private Equity (LMMPE) sector. The CFA® charterholder and current Pepperdine Graziadio MBA candidate brings a unique perspective shaped by his experience as an Investment Associate at a single-family office and his earlier role in enterprise 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 honed his analytical skills as a Credit Analyst at Veritex Bank before moving into investment management.
The former University of Texas at Dallas golf team captain, who graduated Magna Cum Laude with degrees in Finance and Economics, emphasizes the strategic advantages of the LMMPE sector. Drawing from his experience overseeing private equity and venture capital portfolios, Pettit points out that larger funds are often constrained by their size, making them “more efficient and cost-effective at making 10-20 large acquisitions per fund” rather than pursuing smaller opportunities.
The two-time Cleveland/Srixon Academic All-America Scholar sees particular promise in technological transformation. “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 notes.
Pettit’s background in risk management surfaces in his balanced approach. While acknowledging that “LMMPE has historically generated significant returns and is poised to continue to do so,” he emphasizes that “investors should be mindful of liquidity risks generally associated with private equity investments.”
With generational shifts creating new opportunities – “52% of families do not want to pass their family business down to their children” – Pettit sees LMMPE as a crucial space for investment growth, provided investors carefully evaluate fund managers and strategies.