PALO ALTO, Calif.--(BUSINESS WIRE)--HGGC (or “the Firm”) , a leading middle-market private equity firm with a sector-focused approach, today announced it has completed fundraising for HGGC Fund IV (“Fund IV”) with $2.54 billion of capital commitments. Fund IV exceeded its $2.25 billion target and continued to diversify its global limited partner base, including a significant commitment from the General Partner and its affiliates, who collectively remain the largest investor across all HGGC funds, ensuring strong alignment of interests.
Fund IV is HGGC’s largest fund to date and is nearly 38% larger than the Firm’s $1.85 billion Fund III. With the closing of Fund IV, HGGC now has more than $6.8 billion of cumulative capital commitments from over 170 Limited Partners representing public and private pension funds, sovereign wealth funds, insurance companies, family offices and other institutional investors in 25 countries across North America, Europe, Asia, and the Middle East. Fund IV has already invested in nine platform investments, including Aceable, Aspire Holdings, BuilderTrend, Entrata, Fullscript, Grand Fitness, Marmic Fire & Safety, PCF Insurance, and Specialist Risk Group.
“We are very proud of this successful fundraise and the results generated by our funds in the context of a highly uncertain macroeconomic environment, all while significantly growing the firm and maintaining focus on the fundamentals of our investment approach,” said Rich Lawson, HGGC Co-Founder and CEO. “We thank all of our new and returning investors in Fund IV for their trust and confidence in our team, and we are more excited than ever about HGGC’s future.”
HGGC is focused on four sectors in the middle market: Business & Tech-enabled Services, Consumer, Financial Services, and Software & Technology. Within these sectors, the Firm applies a flexible, “full toolkit” approach—full-control, shared-control, and minority ownership structures; private and public company transactions; and investing across different stages of business growth—that generates a wider range of addressable opportunities across different market environments.
The Firm is further distinguished by its Advantaged Investing approach where management teams and founders reinvest alongside HGGC, Limited Partners enjoy significant co-investment opportunities, and HGGC frequently partners with other leading investment firms. This model helps HGGC to source and acquire scalable businesses and has generated $8.2 billion of aggregate invested equity since inception. Recent realizations include Beauty Industry Group, Davies, Idera, Integrity Marketing Group, HelpSystems, and PCF Insurance.
Evercore Private Funds Group acted as the primary placement agent, and Kirkland & Ellis LLP served as legal advisor.
HGGC is a leading middle-market private equity firm with over $6.8 billion of cumulative capital commitments. Based in Palo Alto, Calif., HGGC is distinguished by its Advantaged Investing approach that enables HGGC to source and acquire scalable businesses through partnerships with management teams, founders and sponsors who reinvest alongside HGGC, creating a strong alignment of interests. Since its inception in 2007, HGGC has completed more than 500 platform investments, add-on acquisitions, recapitalizations, and liquidity events with an aggregate transaction value of over $68 billion. More information, including a complete list of current and former portfolio company platforms, is available at www.hggc.com.