TJC seeks multi-asset continuation fund for latest secondaries deal

TJC, formerly known as the Jordan Company, is back out in the secondaries market seeking another continuation fund vehicle.

The New York-headquartered investment firm is running a process to raise a multi-asset continuation fund, four sources told Secondaries Investor.

The transaction involves five assets coming from three TJC vehicles – its 2007 vintage $3.58 billion Resolute Fund II; Resolute Fund III, which closed on $3.2 billion in 2014; and its 2018 vintage $3.63 billion Resolute Fund IV, according to a source and affiliate Private Equity International data.

The assets include CFS Brands, a manufacturer and marketer of professional grade options for the restaurant, hospitality, healthcare and janitorial segments; Gulfstream, an oil field rental tools and services company; logistics business Odyssey; naturally derived specialty chemicals provider Vantage; and Young Innovations, which develops and manufactures consumable professional dental products, Secondaries Investor understands.

The vehicle is anticipated to be over $1 billion in size and could secure as much as $2 billion, according to the four sources. William Blair is advising the firm on the transaction, sources said.

TJC declined to comment. William Blair did not return request for comment by press time.

TJC ran a continuation fund process for two assets – AIT Worldwide Logistics and Echo Global Logistics – in 2022, affiliate title Buyouts reported at the time. The transaction followed its $1.3 billion multi-asset continuation fund transaction the year prior led by Hamilton Lane, as Secondaries Investor reported.

Multi-asset continuation funds gained a further share of all continuation vehicle activity last year, at 59 percent of volume versus 41 percent the prior year, according to data from Jefferies. The “marginal” orientation toward multi-asset CVs versus single-asset ones is likely to continue this year as LPs seek liquidity and pressure mounts on managers to produce realisations, Jefferies noted.

There has been a wave of continuation funds closed in recent months. ICG’s Strategic Equity unit stepped up as lead buyer on CVC Capital Partners’ continuation fund for Italian online university group Multiversity. The continuation fund is understood to be between €1.5 billion and €2 billion in size, Secondaries Investor reported last month.

Apollo S3 led a $1.15 billion single-asset continuation fund for tech-focused private equity shop OceanSound Partners’ IT solutions business SMX Group, which also closed in April.

Lexington Partners took the lead on a $750 million multi-asset continuation fund for healthcare-focused Hildred Capital. The deal saw skincare product marketer and manufacturer Crown Laboratories and consumer healthcare product supplier Hyland’s Naturals moved into a separate vehicle.

Pantheon led another continuation fund for Morgan Stanley Capital Partners’ peer-to-peer network and knowledge exchange platform World 50 with Blue Owl Strategic Equity and Lexington acting as co-leads.