Dyal Capital Partners, a division of Neuberger Berman and an active investor in private equity firms, has acquired a non-voting minority stake in HGGC.
HGGC (formerly Huntsman Gay Global Capital) 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. Sectors of interest include business services, consumer, financial services, healthcare, industrial services, information services, and software.
Dyal Capital Partners, a division of Neuberger Berman Group, makes minority equity investments in institutional alternative asset management businesses worldwide. The firm’s current portfolio includes 20 minority investments in private equity firms and 14 minority investments in hedge funds. Dyal’s investment in HGGC follows its October 2018 non-voting investment in New York-based American Securities and its August 2018 investment in middle market lender and New York-based Golub Capital.
“We’re very excited to partner with Dyal Capital, which has a stellar reputation for investing in best-in-class firms,” said Rich Lawson, chairman, CEO and co-founder of HGGC. “Dyal’s investment provides HGGC with balance sheet capital to continue to develop our strong platform while increasing commitments to our own funds and strengthening alignment with our limited partners.”
Earlier this year the firm closed Dyal Capital Partners IV LP with $7 billion of committed capital. The firm’s earlier fund closed with $5.3 billion of committed capital in December 2016. Dyal was founded in 2011 and has offices in New York, London and Hong Kong (www.dyalcapital.com).
HGGC markets its investment strategy as “Advantaged Investing” that, according to the firm, enables it to source and acquire businesses at attractive multiples through partnerships with management teams, founders and sponsors who reinvest alongside HGGC creating an alignment of interests. “HGGC has very quickly become a premier middle market investment firm through its ‘Advantaged Investing’ model that creates true partnerships with founder-owners, management teams and sponsors,” said Michael Rees, a managing director and head of Dyal Capital. “We are excited to partner with HGGC given this differentiated approach, the strong and growing team, and the firm’s demonstrated commitment through being one of the largest investors across its own funds.”
HGGC’s current portfolio includes more than 19 investments including AutoAlert, a provider of data analytics and lead-generation services to automotive dealers; Nutraceutical, a manufacturer, marketer, distributor and retailer of branded nutritional supplements; and Integrity, a developer and distributor of life and health insurance products to the senior market. In December 2016, HGGC closed its third fund, HGGC Fund III LP, with total capital commitments of $1.8 billion, surpassing its target of $1.5 billion and reaching its hard cap. HGGC is based in Palo Alto (www.hggc.com).
“Attracting this minority investment from Dyal is further evidence of our successful strategy and the results we are generating for our limited partners,” said Steve Young, president and co-founder of HGGC. “We look forward to putting this capital to work in growing our portfolio of great businesses.”
Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages equities, fixed income, private equity and hedge fund portfolios for institutions and advisors worldwide with $304 billion in client assets as of December 31, 2018. The firm has offices in 22 countries and is headquartered in New York (www.nb.com).
Evercore (www.evercore.com) was the financial advisor to HGGC and Kirkland & Ellis (www.kirkland.com) provided legal services.
© 2019 Private Equity Professional | March 27, 2019
J.W. Childs Associates (JWC) has announced that it is changing its name to Prospect Hill Growth Partners.
The name change follows last month’s retirement of the firm’s co-founder and chairman John Childs. Mr. Childs established J.W. Childs Associates in 1995 and led the organization in its first three funds and many profitable investments, such as Beltone Electronics, Universal Hospital Services and Meow Mix. Before founding JWC, Mr. Childs was a senior managing director at THL where he led the investment in Snapple Beverage, considered by many to be among the most successful leveraged buyouts in the industry. Before THL, Mr. Childs was a senior managing director at Prudential Insurance in its capital markets group.
“John built an enduring and strong business and we appreciate his many contributions to JWC,” said Adam Suttin, managing partner. “I look forward with confidence to the next chapter for our firm and wish John well.”
In September 2018, the firm acquired Walker Edison, a supplier of ready-to-assemble furniture to global e-commerce platforms. Walker Edison’s products include living room furniture, home office furniture, bedroom furniture, dining furniture, and outdoor and patio furniture. Walker Edison sells its products through e-commerce and traditional retailers. The company was founded in 2006 and is based in Salt Lake City (
Canaccord Genuity Group has acquired investment bank Petsky Prunier and all of the firm’s partners have entered into employment agreements with Canaccord Genuity.
“Our US capital markets business has become an increasingly stronger regional competitor and this acquisition advances our priority of investing in areas of higher margin potential, as we continue to position our company for increased stability and long-term profitability,” said Dan Daviau, president and CEO of Canaccord Genuity. “The addition of Petsky Prunier creates an exceptional opportunity for our North American capital markets business, while simultaneously enhancing long-term value for our partners and shareholders.”
Canaccord Genuity Group (TSX: GF) is a full-service investment banking and financial services company that specializes in wealth management and capital markets. The firm provides mergers and acquisitions, corporate finance, restructuring, debt advisory and strategic advice for corporate, government and private equity clients globally. Canaccord Genuity is headquartered in Toronto with additional offices in Canada, the US, the UK, France, Ireland, Israel, Hong Kong, China, Singapore, Australia and Dubai (
Campbell Lutyens, a fund placement agent and secondaries advisor, has opened a new office in Charlotte, NC led by Principal Matt Flynn who joined the firm earlier this year.
“We have always recognized the need for a local presence, even in a global business such as ours,” said Chris Davidsson, Partner. “Charlotte is a natural complement to our offices in New York, Chicago and Los Angeles, providing us with a base from which to maintain and expand our coverage across the Southeast region and ensuring we provide the best possible service across fund placement and secondaries advisory.”
Mr. Flynn has 12 years of placement agent experience, with a primary focus on the US market. He joined Campbell Lutyens in September 2018 from Credit Suisse Private Fund Group, where he focused on the origination and due diligence of private investment funds. Mr. Flynn has a degree in Business Administration from the University of North Carolina.
The Leveraged Finance Fights Melanoma benefit and cocktail party is planned for 
Houlihan Lokey has agreed to acquire Quayle Munro Limited, a London-based investment bank.
The buy of Quayle Munro adds a new capability in data & analytics to Houlihan Lokey, expands the firm’s financial institutions focus in Europe, and builds the firm’s presence in financial technology and education. “The use of data & analytics to make both business and general management decisions has become an increasingly critical component in the corporate toolkit,” said Scott Beiser, CEO of Houlihan Lokey. “Data & analytics has become virtually ubiquitous, and its importance in analyzing trends, enhancing productivity, and growing one’s business cannot be overstated. We’re confident that our new Data & Analytics Group is the global leader in this incredibly important and rapidly expanding field.”
The Data & Analytics Group will continue to be headed by Andrew Adams, Quayle Munro’s CEO, who will also serve as Co-head of Houlihan Lokey’s UK Corporate Finance business. “In addition to its comprehensive global presence, extensive private equity coverage, and broad sector expertise, Houlihan Lokey possesses a strong cultural compatibility with the Quayle Munro team,” said Mr. Adams. “We could not be more excited to build out this new industry group and further grow the firm’s client base across data & analytics, financial institutions, financial technology, and education with the additional resources and the global presence of Houlihan Lokey.”
Houlihan Lokey is an international investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, valuation, and strategic consulting. The firm serves corporations, institutions, and governments with offices in the US, Europe, the Middle East, and the Asia-Pacific region (
Private Equity for Puerto Rico, formed by a group of leading private equity firms, including Clearlake Capital Group, Valor Equity Partners, StepStone Group, Palladium Equity Partners, and MoonSail Capital announced today an effort to raise significant funds from the private equity and financial communities to aid victims of Hurricane Maria in Puerto Rico.
“In the face of so much anguish and devastation as a result of this unimaginable event, we wanted to find a way to assist the people of Puerto Rico,” said Jose Feliciano, Co-Founder and Managing Partner of Clearlake Capital Group. “Our beloved island needs our help now and going forward in what will undoubtedly be a long path to recovery. As a native of Puerto Rico, I hope this donation from Clearlake and KJSI serves as a seed that helps us achieve our $10 million goal in collaboration with the Foundation for Puerto Rico and our friends in the private equity and broader financial community.”
“Many in the private equity industry have asked how they can help, and donating to PE for PR is just one easy way. The Foundation for Puerto Rico is already helping in cities and rural areas across the island. They are getting basic necessities, such as water and food, to those who are on the brink. They are also helping with energy and communication initiatives. We at Valor and I, as a proud Puerto Rican, are grateful for their work and we look forward to getting available funds to them as quickly as possible,” said Juan Sabater, Partner of Valor Equity Partners.
“This is a critical time for Puerto Rico, and getting funds to the island and a proven aid organization is the best way to help. Our goals are not only to eliminate the suffering, but to provide the backing that will enable a stronger Puerto Rico to emerge,” said José Fernandez, Partner and Chief Operating Officer at StepStone Group.
“While some assistance has arrived in the bigger cities, it’s important to keep the smaller municipalities in mind. Relief just isn’t getting there,” said Marcos Rodriguez, Chairman and Chief Executive Officer of Palladium Equity Partners. “We’ve set up the Fund and the Classy page, and will be working with the well-respected Foundation for Puerto Rico to make it as easy as possible for firms and individuals to donate to this worthy cause. In just a few clicks everyone can help a little, and together, we can help a lot.”
“The devastation in Puerto Rico is widespread and much more help is needed. While today people require basic necessities to survive, the focus will ultimately move to reconstruction of this island that has endured more than $90 billion in damage. Together with the Foundation for Puerto Rico, we can help ensure safety, recovery, and the best future for Puerto Rico,” said Rafael Ortiz, Managing Director of MoonSail Capital.
