TJC Secures $2.1 Billion for Continuation Fund Expansion
TJC LP Closes $2.1 Billion Continuation Fund
TJC LP, a renowned middle-market private equity firm dedicated to investing in North American businesses, has proudly announced the closure of its second continuation fund valued at $2.1 billion. This significant fund will extend The Resolute Fund III, L.P. and include assets that are co-owned with The Resolute Fund IV, L.P.
Details of the Continuation Fund
The newly established Continuation Fund has acquired five influential portfolio companies, including vital assets from Resolute III, a fund established in 2013 with about $3.2 billion in capital commitments. Furthermore, it encompasses a portfolio company that Resolute III jointly owns with Resolute IV, a later fund from 2018 that has approximately $3.6 billion in capital commitments. This exciting development provides TJC with not only the capital but also the time necessary to accelerate the growth of its core portfolio assets, thereby offering limited partners from Resolute III and IV a timely chance to achieve liquidity.
Growth and Strategic Opportunities
Rich Caputo, TJC’s Chairman and Chief Executive Partner, expressed optimism about the potentials this transaction unlocks. He stated, "As we continue to integrate acquisitions and implement operational initiatives within the Continuation Fund portfolio, this transaction will enable us to provide our portfolio companies with the required resources, time, and flexibility to thrive. This approach will consistently contribute to building shareholder value." He further emphasized the importance of giving investors a chance for accelerated liquidity at market-driven prices while allowing companies to follow through on their long-term growth plans.
Investor Support and New Collaborations
The second continuation fund demonstrated overwhelming support from limited partners, and notably was oversubscribed by new investors. Kristin Custar, Partner and Head of TJC’s Global Investor Capital Group, remarked, "We are thankful for the dependable partnership of our investors who made this Continuation Fund possible and appreciate their continued support and trust in our strategy."
Role of AlpInvest
AlpInvest, a subsidiary of the well-known global investment firm Carlyle (NASDAQ: CG), led the transaction and confirmed a diverse participation of secondary and primary investors, including limited partners from Resolute III and IV. TJC ensured that all existing Resolute III and IV limited partners benefited from options, allowing them to exercise full liquidity, opt for rollover options, or explore the possibility of making further commitments to the Continuation Fund.
The Path Ahead for TJC
"AlpInvest is delighted to deepen our partnership with TJC by leading the Resolute III Continuation Fund transaction," shared Eric Anton, Managing Director at AlpInvest. "This transaction truly aligns with our investment strategy, and we are excited to continue our collaboration with TJC to drive value creation initiatives across the expanding portfolio."
In facilitating this vital operational growth, William Blair served as the exclusive financial advisor to TJC, ensuring effective placement of the Continuation Fund. Meanwhile, the legal counsel for this transaction was provided by Latham & Watkins LLP.
About TJC
TJC LP, originally known as The Jordan Company, has built a solid reputation over the past four decades collaborating with CEOs, founders, and entrepreneurs across a multitude of industries. This diverse range includes sectors like Consumer & Healthcare, Diversified Industrials, Industrial Technology, Logistics & Supply Chain, and Technology & Infrastructure. With an impressive asset management portfolio that was estimated at $31.4 billion as of June 30, 2024, TJC operates under the guidance of a committed senior leadership team that has worked together for over 22 years on more than 80 investments. The firm operates from its locations in New York, Chicago, Miami, and Stamford.
About AlpInvest
AlpInvest, known as a premier global private equity investor and a subsidiary of Carlyle (NASDAQ: CG), proudly manages over $80 billion in assets and boasts a wide-ranging investor base exceeding 500 as of June 30, 2024. The company has a solid track record of collaborating with more than 360 private equity managers. With operations spread across New York, Amsterdam, Hong Kong, London, and Singapore, AlpInvest continues to thrive in the sector.
Frequently Asked Questions
What is the purpose of TJC's second continuation fund?
The continuation fund aims to accelerate the growth of core portfolio assets and provide liquidity options for limited partners.
Who led the transaction for the continuation fund?
AlpInvest, a subsidiary of Carlyle, led the transaction for TJC's continuation fund.
What industries does TJC invest in?
TJC invests in various industries, including Consumer & Healthcare, Industrial Technology, and Logistics & Supply Chain, among others.
How long has TJC been in operation?
TJC has been operating for over 40 years, partnering with industry leaders and entrepreneurs.
What is the significance of the partnership with AlpInvest?
The partnership with AlpInvest indicates a strong alignment of investment strategies and enhances TJC's capability to drive value creation across its portfolio.
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