Jordan raises $3.6bn for second fund

The middle market vehicle easily passed its $2.5 billion target, and more than triples Jordan’s capital under management.

US middle market firm The Jordan Company has raised $3.6 billion (€2.5 billion) for its second private equity fund, The Resolute Fund II. The fund was significantly oversubscribed, surpassing its $2.5 billion target.

The firm closed its first fund on $1.5 billion in 2002. Though the firm was founded in 1982, the 2002 fund was the first time that Jordan sought capital through a limited partnership structure, having previously drawn funds from its partners and a publicly traded entity on the London Stock Exchange called JZ Equity Partners.

Fund II was the firm’s first fund raised through a placement agent. Jordan brought in Credit Suisse in order to attract more capital, as well as investors from new regions, particularly Asia and Europe, chief administrative and investor relations officer Kristin Custar told PEO. Fifty of the fund’s 150-some limited partners are new investors, she said.

The fund garnered commitments from the California State Teachers’ Retirement System, the New Jersey Investment Board, the Illinois State Board of Investment, the New York State Teachers Retirement System, the Irish National Pensions Reserves Fund, TIAA-CREF and Canada Pension Plan Investment Board, among others.

Like its predecessor, Fund II will invest opportunistically in a variety of industries. The fund will invest around $200 million per deal, whereas Fund I targeted $100 million to $150 million. Fund I also frequently brought on co-investors; Custar said Fund II will be the sole investor in deals.

The fund has made four acquisitions to date: healthcare products distributor Harrington Holdings in January 2007; live event lighting provider Production Resource Group in August; Chinese TV advertising company Omnimedia in September; and clinical research organization Worldwide Clinical Trials in November.

Jordan has offices in New York, Chicago, Beijing and Shanghai. The Beijing office provides operational support for portfolio companies, while the Shanghai office works on mergers and acquisitions. In addition to making equity investments in China, Jordan has set up several joint ventures to outsource its portfolio companies’ manufacturing operations.

Founder Jay Jordan is also chairman of the University of Notre Dame’s investment and finance committee. Before launching Jordan, he spent nine years at merchant bank Carl Marks & Co.