New Funds: JLL Targets $2B For Fourth Fund –

Joseph Littlejohn & Levy wants twice as much for its new fund.

The New York firm this month launched its fourth buyout fund, which has a target of $2 billion, according to a source close to the firm.

The firm’s third fund closed on $1 billion in 1998.

Partners at Joseph Littlejohn were not available for comment.

Joseph Littlejohn specializes in buying out divisions of troubled conglomerates. In October, the firm acquired 15 hospitals from two health care management companies for a total of $840 million (BUYOUTS Oct. 25, 1999, p. 8). The firm also owns New World Pasta, which it bought from Hershey Food Corp. early last year for $450 million.

Signaling the firm’s increasing interest in international investing, Joseph Littlejohn in July acquired a bus-manufacturing company from Mexican conglomerate Consorico G Grupo Dina for $775 million.

Joseph Littlejohn’s investment team has seen heavy turnover in the past few years. Last year co-founder Peter Joseph left to join private equity start-up Palladium Equity Partners, which was founded by two other Joseph Littlejohn defectors. In 1997, Angus Littlejohn left to form turnaround firm Littlejohn & Co.

Partners David Ying and Jeffrey Lightcap join the remaining Joseph Littlejohn co-founder, Paul Levy, in managing the firm’s investments.