Jordan Co hits $3.2 bln target on Fund IV

Jordan Co raised about $3.2 billion in a recent third close, hitting the target on its fourth fund, according to an investor letter seen by Buyouts.

Fundraising is substantially complete, according to an LP with knowledge of the fund. When Fund IV will hold a final close is unclear. Resolute Fund IV was set for a final close in March, Buyouts previously reported.

Ugo Ude, partner and general counsel, did not respond to a request for comment.

Jordan Co invests in middle-market companies with enterprise values of $100 million to $1.5 billion, a presentation from a Nebraska Investment Council meeting this year showed.

Fund IV will invest $50 million to $500 million of equity per deal, the presentation said.

Fund IV charges a 1.75 percent management fee during the investment period, falling to 1 percent afterward. Jordan charges 20 percent carried interest with an 8 percent preferred return, the presentation said.

The firm closed Fund III on $3.2 billion in 2014. Fund III was generating an 18.9 percent internal rate of return since inception as of Sept. 30, 2017, performance information from California State Teachers’ Retirement System shows.

Jordan Co has been exploring a liquidity process on older funds, enabling investors to cash out. The LP characterized the secondary process as a cleanup of older funds to deliver liquidity to LPs in those pools, including Jordan senior executives no longer involved in daily operations.

Jay Jordan, co-founder along with David Zalaznick, previously reduced his day-to-day role. Chief Executive and Partner Rich Caputo leads the firm along with Jeb Boucher and Adam Max, who are managing partners.

Action Item: Check out Jordan Co’s Form ADV here: https://bit.ly/2JXjOmG