Jordan Co sees March close on first fund without Jay Jordan as CEO

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Jordan Co, Jay Jordan, private equity
Hands are silhouetted against a backdrop projected with the picture of various currencies of money in this illustration taken April 4, 2016. REUTERS/Kacper Pempel/Illustration TPX IMAGES OF THE DAY - RTSDIYI
  • Jordan still chairman, on investment and finance committees
  • Fund is targeting $3.2 bln
  • Expected close on March 15

Jordan Co expects to close its fourth flagship buyout fund on March 15, its first without Co-Founder Jay Jordan at the helm, Nebraska Investment Council meeting materials show.

Jordan Co is targeting $3.2 billion to acquire middle-market companies with enterprise values of $100 million to $1.5 billion, the presentation says. The fund, Resolute Fund IV, will invest $50 million to $500 million of equity per deal.

Jay Jordan was in the process of reducing his role in day-to-day operations at the firm when it marketed its previous flagship fund, CEO Rich Caputo told Public Employees Retirement Association of New Mexico board members in 2013, according to The Wall Street Journal.

Jordan, who co-founded Jordan Co with David Zalaznick in 1982, had been co-CEO with Caputo when Fund III held a final close on $3.2 billion in 2014. He still holds the title of chairman and leads the firm’s investment and finance committees, its website says.

In addition to Caputo, Jeb Boucher and Adam Max are managing partners at the firm. David Butler, Mike Denvir, Brian Higgins, Eion Hu, Joe Linnen and Doug Zych are senior partners at the firm.

Jordan Co declined comment.

Nebraska approved a $50 million commitment to the fund at its Feb. 8 meeting. Ohio Police & Fire Pension Fund committed up to $30 million to the fund on Feb. 20.

The firm proposed LPs pay a 1.75 percent management fee during the fund’s investment period, according to the Nebraska staff memo. The fee falls to 1 percent following the investment period.

Jordan Co will take 20 percent of the fund’s profits as carried interest with an 8 percent preferred return.

Resolute Fund III was grossing a 24 percent internal rate of return and 1.5x multiple as of Sept. 30, Nebraska materials show.

Action Item: For more on Jordan Co, visit www.thejordancompany.com

Hands are silhouetted against a backdrop projected with the picture of various currencies of money in this illustration taken April 4, 2016. REUTERS/Kacper Pempel