• February 12, 2025

Small Business Meets Big Capital: Levi Pettit on LMMPE Growth

From his unique vantage point as both a CFA® charterholder and MBA candidate at Pepperdine Graziadio Business School, Levi Pettit sees transformative potential in the Lower-Middle Market Private Equity (LMMPE) sector. Drawing from his experience as an Investment Associate at a single-family office, where he managed private equity and venture capital portfolios, Pettit identifies key opportunities in this growing 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 includes roles in enterprise risk management and credit analysis at Veritex Bank. The Magna Cum Laude graduate of The University of Texas at Dallas, where he earned degrees in Finance and Economics while serving as golf team captain, points to demographic shifts creating new opportunities.

As a two-time Cleveland/Srixon Academic All-America Scholar, Pettit brings an analytical approach to market evaluation. He notes that while larger funds focus on bigger deals, finding it “more efficient and cost-effective at making 10-20 large acquisitions per fund,” this creates space for LMMPE firms to target promising smaller enterprises.

The technological revolution adds another layer of 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, drawing from his background in risk management and investment evaluation, Levi Pettit maintains a measured perspective. While noting that “LMMPE has historically generated significant returns and is poised to continue to do so,” he emphasizes that success requires careful manager selection and thorough due diligence, insights gained from his extensive experience in portfolio management.