Littlejohn Turnaround Fund Progressing Nicely

Firm: Littlejohn & Co.

Fund: Littlejohn Fund IV LP

Amount Raised: $800 million

Target: $1.25 billion; hard cap $1.35 billion

Placement Agent: Park Hill Group

Littlejohn & Co. is closing in on the target for a fund it launched a little more than a year ago.

The Greenwich, Conn.-based turnaround shop has raised about $800 million so far for Littlejohn Fund IV LP, which was launched in January 2009. That figure is expected to jump to more than $1 billion by the end of the first quarter, according to a source with information about the matter, which would put the fund within reach of its $1.25 billion target and $1.35 billion hard cap. The firm will likely wrap up its fundraising in the middle of the second quarter, said the source.

Littlejohn & Co. gathered $850 million in 2006 for its predecessor fund. The firm invests in companies generating revenues between $150 million and $800 million. For control investments, the firm writes equity checks of $50 million to $100 million per deal. On average, Littlejohn & Co. does three or four transactions per year. Areas of interest include industrial equipment, packaging, chemicals, automotive, transportation parts and equipment, food and food processing, electronics and electrical products, health care, plastics, aerospace, defense, distribution, environmental and infrastructure services, and consumer products. The firm typically invests in the United States, but it will also consider deals in Canada and Europe.

Portfolio companies include Synchronous Aerospace Group, a maker of aircraft parts; CoActive Technologies, which makes electromechanical switches; Van Houtte, a coffee roaster and distributor; Clean Earth, a processor of contaminated soil; and Penda Corp., which makes automotive exterior trim and accessories.

Backers include the Employees Retirement System of Texas; the Maryland State Retirement and Pension System; and the Virginia Retirement System.