JLL Partners
Encyclopedia
JLL Partners is an American private equity
firm focused on leveraged buyout
transactions and leveraged recapitalization
s of middle-market companies. The firm is headquartered in New York City
and was founded in 1987. JLL invests in various industries including food and consumer products, automotive parts, health care, media and telecommunications, commodity and specialty chemicals, building products, transportation, and industrial manufacturing and distribution. The company tends to focus on companies requiring an operational turnaround.
founded in 1987 by William J. Gilliam, Peter A. Joseph and Angus C. Littlejohn Jr. The three founders met in the mid-1980s at the Quadrex Corporation, a small New York brokerage. They initially leased their office space from Bennett S. LeBow
, a 1980s corporate raider and fellow Drexel Burnham Lambert
client. At Quadrex, Gilliam, the youngest of the three, managed the mergers and acquisitions
unit, and the other two reported to him. After a series of successful investments, the three decided to leave Quadrex and set up their own small private equity firm
. In 1988, Paul S. Levy, formerly a managing director, at Drexel Burnham Lambert who focused on corporate restructurings and exchange offers, was recruited to join the firm, which was renamed Gilliam Joseph Littlejohn & Levy. Levy helped his new partners secure $150 million of capital for buyout transactions from his former firm, Drexel Burnham Lambert.
JLL experienced an early success with the leveraged buyout
of Rexene Corp, a Texas
-based chemical company, which made the partners multi-millionaires. Gilliam would eventually set up his own small investment firm Gilliam & Company to focus on investments in chemicals and plastics and would serve as chairman of Rexene. In 1991, Gilliam, faced a similar falling out with the board of Rexene and abruptly resigned.
JLL's investment funds have experienced mixed results. According to data from Private Equity Intelligence, JLL Partners Fund III and V have proven to be top-performing for their respective vintage years, however funds I and IV were slightly below the median for their vintage years and the returns on fund II were in the bottom quartile of 1994 vintage funds.
In 1996, Angus Littlejohn resigned from Joseph Littlejohn & Levy to form a new private investment firm, Littlejohn & Co.
The following year, in 1998, Peter Joseph left and joined Palladium Equity Partners, a middle-market private equity firm with a specialization in investments in the U.S. Hispanic market and also in Mexico, Spain, and Brazil, founded the prior year.
In 2002, after a lengthy and difficult fund-raising process, the rechristened "JLL Partners" was able to close a new private equity fund
, JLL Partners Fund IV LP., with $750 million of investor commitments, representing a 25% decrease from its previous fund.
s with investor commitments totaling $7.2 billion of investor commitments:
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm focused on leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
transactions and leveraged recapitalization
Leveraged recapitalization
In corporate finance, a leveraged recapitalization is a change of the capital structure of a company, a substitution of equity for debt —e.g. by issuing bonds to raise money, and using that money to buy the company's stock or to pay dividends...
s of middle-market companies. The firm is headquartered in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
and was founded in 1987. JLL invests in various industries including food and consumer products, automotive parts, health care, media and telecommunications, commodity and specialty chemicals, building products, transportation, and industrial manufacturing and distribution. The company tends to focus on companies requiring an operational turnaround.
History
JLL traces its roots back to Gilliam Joseph & Littlejohn, a merchant bankMerchant bank
A merchant bank is a financial institution which provides capital to companies in the form of share ownership instead of loans. A merchant bank also provides advisory on corporate matters to the firms they lend to....
founded in 1987 by William J. Gilliam, Peter A. Joseph and Angus C. Littlejohn Jr. The three founders met in the mid-1980s at the Quadrex Corporation, a small New York brokerage. They initially leased their office space from Bennett S. LeBow
Bennett S. LeBow
Bennett S. LeBow is a financier and corporate raider. He is also the former Chairman of the Board and CEO of Borders Group, an international bookseller based in Ann Arbor, Michigan and Chairman of the Board of Vector Group, a holding company primarily involved in the manufacturing of cigarette...
, a 1980s corporate raider and fellow Drexel Burnham Lambert
Drexel Burnham Lambert
Drexel Burnham Lambert was a major Wall Street investment banking firm, which first rose to prominence and then was forced into bankruptcy in February 1990 by its involvement in illegal activities in the junk bond market, driven by Drexel employee Michael Milken. At its height, it was the...
client. At Quadrex, Gilliam, the youngest of the three, managed the mergers and acquisitions
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
unit, and the other two reported to him. After a series of successful investments, the three decided to leave Quadrex and set up their own small private equity firm
Private equity firm
A private equity firm is an investment manager that makes investments in the private equity of operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital...
. In 1988, Paul S. Levy, formerly a managing director, at Drexel Burnham Lambert who focused on corporate restructurings and exchange offers, was recruited to join the firm, which was renamed Gilliam Joseph Littlejohn & Levy. Levy helped his new partners secure $150 million of capital for buyout transactions from his former firm, Drexel Burnham Lambert.
JLL experienced an early success with the leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
of Rexene Corp, a Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
-based chemical company, which made the partners multi-millionaires. Gilliam would eventually set up his own small investment firm Gilliam & Company to focus on investments in chemicals and plastics and would serve as chairman of Rexene. In 1991, Gilliam, faced a similar falling out with the board of Rexene and abruptly resigned.
JLL's investment funds have experienced mixed results. According to data from Private Equity Intelligence, JLL Partners Fund III and V have proven to be top-performing for their respective vintage years, however funds I and IV were slightly below the median for their vintage years and the returns on fund II were in the bottom quartile of 1994 vintage funds.
In 1996, Angus Littlejohn resigned from Joseph Littlejohn & Levy to form a new private investment firm, Littlejohn & Co.
Littlejohn & Co.
Littlejohn & Co. is a private equity firm focused on leveraged buyout transactions, leveraged recapitalizations of middle-market companies and distressed securities. The firm focuses on companies requiring an operational turnaround particularly in a variety of industrial and service sectors.The...
The following year, in 1998, Peter Joseph left and joined Palladium Equity Partners, a middle-market private equity firm with a specialization in investments in the U.S. Hispanic market and also in Mexico, Spain, and Brazil, founded the prior year.
In 2002, after a lengthy and difficult fund-raising process, the rechristened "JLL Partners" was able to close a new private equity fund
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
, JLL Partners Fund IV LP., with $750 million of investor commitments, representing a 25% decrease from its previous fund.
Funds raised
Since its founding, JLL has raised six private equity fundPrivate equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
s with investor commitments totaling $7.2 billion of investor commitments:
- 1989 — Joseph Littlejohn & Levy Fund I ($221 million)
- 1994 — Joseph Littlejohn & Levy Fund II ($400 million)
- 1998 — JLL Partners Fund III ($1.0 billion, first fund raised after departure of Joseph and Littlejohn)
- 2002 — JLL Partners Fund IV ($751 million)
- 2005 — JLL Partners Fund V ($1.5 billion)
- 2008 — JLL Partners Fund VI ($3.3 billion, currently in fundraising)
Portfolio companies
- Allegheny International (1988)
- Motor Coach IndustriesMotor Coach IndustriesMotor Coach Industries International Inc. is an American bus manufacturer based in Schaumburg, Illinois, and is a leading participant in the North American coach bus industry. It has various operating subsidiaries:...
(1999) - Lancer Industries, subsequently merged and renamed Fairfield Manufacturing (1986)
- Foodbrands America Inc.IBP, Inc.IBP, Inc., formerly known as Iowa Beef Processors, Inc., now Tyson Fresh Meats, is now an American meat packing company based in Dakota Dunes, South Dakota, USA. IBP was the United States' biggest beef packer and its number two pork processor until it was acquired by Tyson Foods in 2001 for US$3.2...
(1995) - Ornda Healthcorp (1991)
- Motor Wheel Corporation, subsequently merged and renamed Hayes Lemmerz International
- J.G. WentworthJ.G. WentworthJ.G. Wentworth is a financial services firm that specializes in purchasing structured settlements and annuities from individuals. The company is owned by private equity firm JLL Partners....
(2005) - Iasis HealthcareIasis HealthcareIASIS, located in Franklin, Tennessee, is a leading owner and operator of medium-sized acute care hospitals in high-growth urban and suburban markets...
- AdvancePCSAdvancePCSAdvancePCS Inc. was a large prescription benefit plan administrator from the USA, also known as a PBM ....
External links
- JLL Partners (company website)
- Littlejohn & Co. (company website), founded by Angus C. Littlejohn Jr.
- Palladium Equity Partners (company website), Peter A. Joseph joined in 1998