JLL Partners in $1bn blowout exit

The New York buyout firm has turned a $150m investment in a pharmacy benefit manager into an 81 percent IRR winner.

JLL Partners, a veteran New York buyout firm, today announced the exit of its investment in AdvancePCS, a pharmacy benefit manager, in a deal roundtrip that will net the firm roughly $850 million (€688 million) in profits.


In a statement, the firm said its AdvancePCS investment had created an IRR of 81 percent, or a 6.5X return on its initial $150 million investment.


The firm originally invested in AdvancePCS in 2000 through a buyout from drug-store chain Rite Aid. Last year, AdvancePCS was acquired by Caremark Rx, a publicly traded company, for $7 billion, sending $1 billion in proceeds to JLL Partners. Today’s announcement marks the final disposition of all Caremark shares by JLL Partners.


The firm was founded in 1987 by Paul Levy, Angus Littlejohn and Peter Joseph. Littlejohn and Joseph have since left to run their own firms. Senior managing director Ramsey Frank led the AdvancePCS deal for the firm.


The AdvancePCS deal was done by JLL Partners’ third fund, which closed in 1998 on $1 billion. Its fourth fund closed in 2002 on $750 million.


The firm also has an investment in a hospital operator, Iasis Healthcare. JLL Partners also focuses on food, consumer products, automotive parts, media, specialty chemicals, building products and transportation.