HGGC, which employs a sector-focused middle market private equity approach, closed its latest fund at over $2.54 billion.
HGGC Fund IV included a significant commitment from the general partner and its affiliates, who collectively are the largest investor across all HGGC funds, officials said. The latest fund raise was the largest for the $6.8 billion Palo Alto, Calif.-based firm.
Evercore Private Funds Group acted as the primary placement agent, and Kirkland & Ellis LLP served as legal advisor.
“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.
Officials rely on its “Advantaged Investing” approach, which means management teams and founders reinvest alongside HGGC. The private equity firm also offers up co-investment opportunities. In partnering with other leading investment firms, HGGC is also able to source and acquire scalable businesses and has generated $8.2 billion of aggregated invested equity since the firm’s 2007 inception. HGGC has also completed more than 500 platform investments, add-on acquisitions, recapitalizations, and liquidity events with an aggregate transaction value of over $68 billion.
The investment team for Fund IV has already invested in nine platform investments — Aceable, Aspire Holdings, BuilderTrend, Entrata, Fullscript, Grand Fitness, Marmic Fire & Safety, PCF Insurance, and Specialist Risk Group.
HGGC’s investment approach spans full-control, shared-control, and minority ownership structures; private and public company transactions and investing across various stages of business growth. The sector focus remains across: business and tech-enabled services, consumer, financial services and software and technology. Recent realizations include Beauty Industry Group, Davies, Idera, Integrity Marketing Group, HelpSystems and PCF Insurance.
