TJC – a middle-market private equity firm investing primarily in North American businesses – announced the closing of its second continuation fund at $2.1 billion, which will be an extension of The Resolute Fund III, L.P. and include an asset jointly owned with The Resolute Fund IV, L.P.
The Continuation Fund purchased five portfolio companies such as assets from Resolute III, a 2013 vintage fund with approximately $3.2 billion in capital commitments and a portfolio company Resolute III jointly owned with Resolute IV, a 2018 vintage fund with approximately $3.6 billion in capital commitments. And the Continuation Fund will give TJC time and capital to accelerate growth of core portfolio assets, while offering limited partners from Resolute III and Resolute IV an opportunity to achieve liquidity in a timely manner.
The deal was led by AlpInvest, a subsidiary of global investment firm Carlyle (NASDAQ: CG), and included a diverse group of secondary and primary investors, including Resolute III and Resolute IV limited partners. And TJC offered all existing Resolute III and Resolute IV limited partners the opportunity to exercise a full liquidity option, a rollover option, and an option to seek to make additional capital commitments to the Continuation Fund.
William Blair served as exclusive financial advisor to TJC and placed the Continuation Fund. Latham & Watkins acted as legal advisor to TJC.
KEY QUOTES:
“As we drive ongoing acquisition integration and operational initiatives within the Continuation Fund portfolio, we believe this transaction will enable us to provide the Fund’s portfolio companies with greater resources, time and flexibility to execute on these strategies which will continue to build shareholder value. We have given our investors an option to take accelerated liquidity at a market-driven price while allowing the portfolio companies the opportunity to continue to pursue their long-term growth plans.”
– Rich Caputo, Chairman and Chief Executive Partner of TJC
“This is the second consecutive transaction that earned overwhelming support from limited partners, and was oversubscribed by new investors. We are thankful for the partnership of the investors who supported the Continuation Fund and appreciate their continued support.”
– Kristin Custar, Partner and Head of TJC’s Global Investor Capital Group
“AlpInvest is pleased to have the opportunity to expand our partnership with TJC in leading the Resolute III Continuation Fund transaction. The transaction is strongly aligned with our strategy, and we look forward to continuing to support TJC in driving value creation initiatives across the portfolio.”
-Eric Anton, Managing Director at AlpInvest
