LBJ Asset Management Partners

LBJ Asset Management Partners is a prominent private equity and alternative investment firm headquartered in New York City. Founded in 2005 by veteran investor Lawrence J. "Larry" Johnson, the firm specializes in control investing, corporate carve-outs, and complex special situations across North America and Europe. With a focus on the industrial sector, business services, and healthcare, it manages capital for a global client base including public pension plans, sovereign wealth funds, and endowments.

History

LBJ Asset Management Partners was established in 2005 by Lawrence J. "Larry" Johnson, following his tenure as a senior partner at the Bain Capital private equity group. The firm's launch was supported by an anchor commitment from the California Public Employees' Retirement System (CalPERS), one of the world's largest public pension funds. Its early strategy focused on middle-market leveraged buyouts, successfully navigating the Financial crisis of 2007–2008 by acquiring distressed assets. A significant milestone was the 2012 expansion into Europe with the opening of an office in London, led by former Goldman Sachs executive Sarah Wilkinson. The firm further diversified its platform in 2018 by launching a dedicated credit fund to pursue direct lending and opportunistic credit investments, solidifying its status as a multi-strategy firm.

Investment philosophy and strategies

The firm's core philosophy is grounded in sector specialization, operational value creation, and capital preservation. Investment teams conduct deep fundamental research within targeted verticals like advanced manufacturing, logistics, and outsourced services. A hallmark of its approach is the active use of its Executive Partner network, comprised of former Fortune 500 CEOs and COOs, to drive post-acquisition improvements in portfolio companies. Primary strategies include control buyouts of family-owned or divested businesses, build-up strategies to create platform companies, and investments in corporate turnaround situations. The firm typically employs moderate levels of financial leverage and seeks to hold investments for five to seven years.

Leadership and team

The firm is led by its founder, Lawrence J. "Larry" Johnson, who serves as Chairman and Chief Investment Officer (CIO), overseeing all investment activities and firm strategy. Day-to-day operations and firm management are handled by Chief Executive Officer (CEO) Michael R. Chen, a former managing director at The Blackstone Group. The investment committee includes senior partners such as David P. Miller, head of the industrial sector team, and Elena Rodriguez, who leads the healthcare practice. The firm employs over 75 investment professionals across its offices in New York City, London, and Chicago, with teams often featuring alumni from major institutions like Morgan Stanley, McKinsey & Company, and General Electric.

Funds and performance

LBJ Asset Management Partners raises capital through a series of closed-end, commingled private equity funds. Its flagship fund series, LBJ Capital Partners, has raised over $12 billion in aggregate capital since inception. Notable vehicles include LBJ Capital Partners VI, a $3.5 billion fund closed in 2020, and the LBJ Strategic Credit Fund I, a $1.8 billion vehicle launched in 2019. Historically, the firm's funds have consistently ranked in the top quartile of performance as measured by Internal Rate of Return (IRR) and multiple on invested capital (MOIC) benchmarks from Preqin and Burgiss. Its 2014 vintage fund, LBJ Capital Partners V, is recognized as a top performer within its peer group, generating strong returns through exits in the aerospace and packaging sectors.

Notable transactions and portfolio companies

The firm has executed numerous high-profile investments and exits. A landmark transaction was the 2015 acquisition of Precision Castparts Corp.'s fluid handling division, which was later merged with platform company FlowTech International and sold to Parker Hannifin in 2021. Other notable portfolio companies have included MediSys Solutions, a provider of revenue cycle management software to hospitals, and LogiCore, a third-party logistics (3PL) provider. The firm also led a consortium in 2017 to acquire UK-based industrial conglomerate Barlow Industries from Pearson plc, executing a successful turnaround before its sale to Mitsubishi Heavy Industries. These transactions exemplify the firm's strategy of identifying underperforming assets in essential industries and driving operational improvements.

Category:Private equity firms of the United States Category:Financial services companies based in New York City Category:Companies established in 2005