Littlejohn increases third fund

The middle market buyout shop has increased by $200m its third fund, which closed in May 2005 on $650m.

Greenwich, Connecticut-based Littlejohn & Company has completed an additional round of fundraising for Littlejohn Fund III, which has closed on a total of $850 million (€643 million). The firm said it received approval last year from its limited partners to amend the fund’s terms and broaden its investment mandate to include acquisitions which may not result in a controlling stake.

“We have the flexibility to invest in a greater variety of opportunities,” said Angus Littlejohn, the company’s chairman and chief executive, in a statement.

According to its website, the private equity firm typically seeks to acquire distressed companies with revenues ranging from $150 million to $800 million, and alter their strategic direction, operating infrastructure, or financial organisation.

The largest of the firm’s funds to date, Littlejohn Fund III was closed in May 2005 on $650 million, surpassing its original target by $50 million. It had a first close on $380 million in January 2005.

The firm’s third fund was marketed predominantly to limited partners that had invested in its previous fund, including public and corporate pensions, endowments, insurance companies and funds of funds. Littlejohn Fund II closed in 2000 on $530 million; the firm’s first fund closed in 1997 on $205 million.

Littlejohn was founded in 1996 by Angus Littlejohn following his split from the New York-based private equity firm he co-founded in 1988, Joseph Littlejohn & Levy, which is now known as JLL Partners.