June 25, 2015
Two departed Leonard Green execs, Peter Nolan and Michael Connolly, continue to serve on the Palms Casino board. CC photo by flipchip / LasVegasVegas.com

How will former execs’ divided loyalties impact Green Equity Investors deals?

Key Points:

Over the past two years, Leonard Green has lost at least four executives – Managing Partner Peter Nolan (stepped aside 2014), Partner Michael Connolly (2013), Vice President Oliver Nordlinger (2014), and CCO/COO Michael Gennaro (2013).

Departed executives continue to represent LGP on boards of companies in which LGP has an ownership interest. Nolan retains board seats at Activision, Inc., AerSale Holdings, Inc., Motorsport Aftermarket Group, The Palms Hotel & Casino, and Scitor Corporation. Connolly retains board seats at Cascade Bancorp and the Palms Hotel & Casino.

LGP’s two most recent funds have underperformed – Green Equity Investors VI (2012) was ranked in the 3rd quartile as of 3Q14 while Green Credit Investors (2008) was ranked in the 4th quartile as of 2Q14.

The staff turnover occurred after Leonard Green’s last round of fundraising in 2012, meaning the team that deploys GEI VI will be different than the team in place when Leonard Green raised the fund.

Leonard Green has had three different people serve as chief compliance officer since 2013.

Questions to Consider