# Level 5 Capital Partners

Level 5 Capital Partners is a Private Equity based in Atlanta, United States.

## Overview

- **Organization type:** Private Equity
- **Headquarters:** Atlanta, United States
- **Region:** North America
- **Address:** Atlanta, GA, United States
- **Founded:** 2010
- **Assets under management:** Undisclosed
- **Website:** lfivecapital.com
- **LinkedIn:** https://www.linkedin.com/company/level-5-capital-partners

## Regulatory record

- **CRD number:** 304140
- **SEC file number:** 801-126313
- **Registration status:** APPROVED
- **Latest Form ADV filing:** 2026-05-19T05:00:00.000Z
- **Reports private funds:** Yes
- **Private funds reported:** 0
- **IAPD record:** https://adviserinfo.sec.gov/firm/summary/304140

## About

Level 5 Capital Partners is an SEC-registered investment adviser in Atlanta, GA, registered since 2022. The firm manages approximately $327 million in regulatory assets. It has 11 employees and 5 investment advisers.

## Sectors

- Real Estate
- Healthcare Services
- Franchise Services

## People

- Chris D. Smith — Managing Partner
- Steve R. Smith — Partner

## Questions

### What is Level 5 Capital Partners' investment thesis?

Level 5 focuses on acquiring and scaling multi-unit franchise operators in mature, cash-flowing systems such as fitness, health and wellness, and food and beverage. The firm targets regional groups with strong unit-level economics and a proven operator team, then provides capital for de novo unit development and tuck-in acquisitions to build territorial density. The thesis relies on institutionalizing operations and expanding within exclusive franchise territories, rather than betting on unproven brands.

### How does Level 5 source deals and manage portfolio operations?

The firm sources investments through long-standing relationships with franchise brand leadership, area developer networks, and franchisee communities—channels that are difficult for generalist sponsors to replicate at scale. Post-acquisition, Level 5 embeds an operating framework that standardizes P&L reporting, marketing spend, and staffing models across locations, effectively converting a collection of independent small businesses into a centrally managed enterprise.

### Does Level 5 invest directly in franchise brands, or in the franchisees themselves?

Level 5 invests in the operating entities that own and run the franchise locations—the franchisee groups—not the corporate franchisor brands. This distinction means the firm underwrites unit-level cash flows from a portfolio of existing operating stores, alongside identified white space for new unit growth, rather than valuing a brand's royalty stream or corporate overhead.

### What geographies does the firm cover?

The firm's investments are concentrated in the Southeast and Sun Belt regions of the United States, with a particularly strong footprint in Georgia, Florida, Texas, and the Carolinas. These markets align with population migration patterns, favorable regulatory environments for franchising, and the firm's ability to provide hands-on operational support from its Atlanta base.

### Is Level 5 a fund-based or deal-by-deal investor?

Level 5 has historically used both committed fund structures and deal-by-deal co-investment vehicles. In recent years the firm has trended toward fund structures that give it more discretion over hold periods and follow-on capital deployment, including the use of continuation vehicles, as demonstrated by its January 2024 transaction extending a platform's hold timeline.

### What role do operating partners play at the firm?

Operating partners at Level 5 are integral to both pre-acquisition diligence and post-close value creation. They evaluate operator talent, assess store-level margin improvement opportunities, and often serve on portfolio company boards or in interim management roles. This operational layer is central to the firm's ability to professionalize multi-unit franchise businesses that were previously owner-operator run.

## Related profiles

- [Level2 Ventures](https://altss.com/profile/level2-ventures)
- [Level Capital Partners](https://altss.com/profile/level-capital-partners)

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Last updated: 2026-06-03T20:00:00.000Z

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