J.F. Lehman & Co prepares for final close in Q4

  • J.F. Lehman has raised $660 mln toward $700 mln target
  • Connecticut considering $75 mln commitment to Fund IV
  • Firm specializes in aerospace, defense industries

J.F. Lehman & Co is preparing to close its latest flagship buyout fund this year, a report prepared by the Connecticut State Treasurer’s office shows.

J.F. Lehman has raised $660 million toward a stated target of $700 million, the report says. In an SEC filing earlier this year, JFL disclosed it had raised $614 million for the fund.

Treasurer Denise Nappier, the sole trustee of Connecticut’s $30 billion public pension system, told the state’s investment-advisory council she was considering committing $75 million to the fund at its Nov. 9 meeting. A commitment of that size from the state would put the firm above its target and well on its way toward its $800 million hard cap.

Connecticut is a limited partner in J.F. Lehman’s previous fund, a $575 million 2011 vintage, which was netting a 14 percent internal rate of return through March 31, treasury spokesman David Barrett wrote in an email. Much of the JFL III portfolio remains unrealized, the report says.

J.F. Lehman was founded by former U.S. Secretary of the Navy John F. Lehman and by Donald Glickman in 1992. The firm specializes in acquiring companies in the defense, aerospace and maritime industries.

Fund IV will invest in eight to 12 platforms, typically putting $60 million and $90 million into each deal. The firm has used Fund IV to acquire two platform investments, American Scaffold and API Technologies, the report shows.

J.F. Lehman has offices in New York and Washington. In addition to Lehman and Glickman, the firm’s partnership group includes Louis Mintz, Stephen Brooks and C. Alexander Harman.

The firm did not respond to a request for comment.

Action Item: For more about J.F. Lehman: www.jflpartners.com

A U.S. Navy crewman directs an F/A-18E Super Hornet fighter jet on the flight deck of the aircraft carrier USS Harry S. Truman in the Mediterranean Sea. Photo courtesy U.S. Navy/Mass Communication Specialist 3rd Class Anthony Flynn/Handout via Reuters