Managers are finding a difficult fundraising environment as LPs contend with overexposure to private equity and decreasing distributions. TJC has increased its target by $500 million from Fund V, which closed in 2021.
Fund VI has a $6 billion hard cap with a first close targeted for this month, according to board documents from the Nebraska Investment Council’s June 8 meeting.
Fund VI will charge a management fee of 1.75 percent on committed capital and 1 percent on invested capital after the investment period ends, in line with Fund V, according to the documents.
The fund has a 20 percent carried interest rate and 8 percent hurdle, according to the documents.
TJC will use the larger fund to invest in more companies and cut larger checks in its investments, according to the board documents. Jordan plans on 20 to 25 platform investments in Fund VI, with each investment ranging between $100 million and $2 billion, the documents said.
According to the documents, Jordan employs a “buy-and-build” approach with a focus on diversified industrials; telecom, technology and power; logistics and supply chain; and consumer and healthcare.
Buyouts reported in July 2022 that the Jordan Company ran a $2 billion process to move two portfolio companies from older funds into a continuation fund. The portfolio companies are ATI Worldwide Logistics and Echo Global Logistics.
The Jordan Group also closed a $1.3 billion GP-led secondaries deal in 2021, Buyouts reported.
Nebraska is considering a $50 million commitment for its primary defined benefit plan and a $7 million commitment for Omaha School Employees’ Retirement System, according to the documents.
Nebraska has scheduled a pace of $100 million to private equity for 2023 for its primary plan while Omaha Schools has scheduled up to $14 million in PE commitments.
Ohio Police & Fire Pension Fund also made a $40 million commitment to Resolute Fund VI.
The Jordan Company did not respond to a request seeking comment by press time.