HGGC Closes Third Fund
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HGGC Closes Third Fund

Private equity firm HGGC – formerly Huntsman Gay Global Capital – has closed its third fund, HGGC Fund III, LP, with total capital commitments of $1.8 billion, surpassing the Fund III target of $1.5 billion and reaching the $1.75 billion hard cap, exclusive of the general partner’s capital commitment.

This fund was raised in a rapid fashion. Fund III was launched on September 6, 2016 and closed on December 14, 2016, which represents less than 100 days in market and less than six weeks from the first close. HGGC raised $1.25 billion from existing investors and $500 million from new investors. The firm’s earlier fund, appropriately named HGGC Fund II, LP, closed in March 2015 with total capital commitments of $1.3 billion.

“We thank our new and returning investors for the confidence they have shown in our team and our Advantaged Investing model,” said Rich Lawson, Co-Founder and CEO of HGGC. Advantaged Investing is defined by HGCC as leveraging the firm’s investor-operator skillsets; multi-sector networks; and alignment of interests to drive positive outcomes. “We are very gratified that our performance and prudent approach to fund size and alignment helped secure this oversubscribed and efficient close. Doing so enables our team to concentrate on finding attractive investment opportunities, growing our portfolio companies and generating attractive cash-on-cash returns for our limited partners.”

With the closing of Fund III, HGGC now has more than $4.25 billion of capital commitments from a range of public and private pension funds, sovereign wealth funds, insurance companies, family offices and other institutional investors in North America, Europe, Asia and the Middle East.

HGGC makes leveraged buyout, recapitalizations and growth equity investments in middle market companies. The firm invests from $25 million to $100 million of equity per transaction in companies that have revenues of $100 million or more, enterprise values of $100 million to $500 million, and EBITDA of $15 million or more. HGGC is based in Palo Alto (www.hggc.com).

HGGC’s portfolio is comprised of investments made across various sectors, including technology and information services, business and financial services, and industrial services. Current portfolio companies include Dealer-FX, a provider of service lane technology software to automotive dealers and OEM clients; FPX, a provider of enterprise configure-price-quote software (managing the price of products/services across a wide spectrum of variables); Integrity Marketing Group, a senior life and health insurance distribution platform; and Survey Sampling International, a provider of data solutions and technology for consumer and business-to-business survey research. Prior investments include Sunquest Information Systems, sold for $1.4 billion to Roper Technologies; Hybris Software, sold for more than $1 billion to SAP AG; and Serena Software, sold to UK-based Micro Focus International for $540 million.

Evercore Private Funds Group was the placement agent for this fundraise and Kirkland & Ellis served as legal advisor.

© 2016 Private Equity Professional | December 20, 2016

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