Littlejohn & Company has collected $1.6 billion for its fifth fund, beating its $1.5 billion target, according to a person with knowledge of the fundraising.
The firm, founded in 1996 by Angus Littlejohn and Michael Klein, could hold a final close on $2 billion on Littlejohn Fund V in June, the person told peHUB.
A spokesman for Littlejohn declined to comment. Park Hill Group is working as placement agent on the fundraising.
The firm closed Fund IV on $1.34 billion in 2010, beating the $1.25 billion target. Fund III closed in 2005 on $850 million.
Littlejohn’s recent funds have had strong performance. Fund IV was producing a 1.42x total value multiple and a 19.3 percent internal rate of return as of Sept. 30, 2013, according to performance information from the Oregon Public Employees Retirement Fund. Fund III was generating a 2.36x total value multiple and a 26.1 percent IRR, according to Oregon.
Limited partners in Fund IV authorized Littlejohn to invest in non-control positions, as well as conventional leveraged buyouts, the firm said in a statement in 2010. Fund IV was targeting about 80 percent of its capital in controls deals and the remainder in distressed opportunities with the intent to gain control. It was not clear if Fund V will have similar flexibility.
Littlejohn focuses on investments in mid-market companies undergoing changes in capital structure, strategy, operations or growth.
The firm in December acquired Hostway Corp, a provider of hosted information technology services to small and medium businesses, from Veronis Suhler Stevenson. Littlejohn also made a significant equity investment in December in Newgistics, a provider of e-commerce services for brands and retailers.
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