The Jordan Company Seeks $3 Billion for Resolute Fund III

The Jordan Company is officially out marketing for its latest fund, sources say.

Jordan is seeking $3 billion for The Resolute Fund III LP, persons say. Fundraising began earlier this year, one source says.

The firm’s prior pool, Resolute II, collected $3.6 billion in 2008. The pool is generating a 6.7% net IRR, according to Dec. 31 data from CalPERS.

Bloomberg News previously reported that Jordan would be fundraising this year.

With offices in New York, Chicago and Shanghai, Jordan invests in middle market companies with enterprise values between $100 million and $2 billion, the firm’s website says.

A. Richard Caputo, Jordan’s co-CEO and managing partner, spoke Wednesday morning at the Chicago Buyouts conference. “We have to always be selling,” he said during a keynote. “A good year is selling as many companies as we buy.”

So far this year, Jordan has acquired one company and sold one. In May, Jordan said it was selling Reinhold Industries to HEICO Corp. The firm also acquired American Fast Freight in January. Jordan, last year, acquired Sequa Automotive Group, VT Services and Vantage Specialty Chemicals. It sold International Mining Machinery to Joy Global in January of 2012.

Jordan appears to have taken advantage of the strong credit markets. Earlier this month, CIT Group said it arranged a $210 million credit facility for Jordan to refinance portfolio company Haas Group International. Thomson Reuters Loan Pricing Corp. said proceeds of the loan were used to refinance Haas’ debt and fund a dividend to Jordan.

Caputo declined to comment on the firm’s fundraising plans.

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