HGGC Is Respected by Other Private Equity Firms

Performing a Google search for private equity firms will show a large number of results. Companies in this industry are always coming and going. So what is it about HGGC that has made it such a powerhouse in the industry for over a decade? There are many ways to answer this question. First of all, the firm has a very high standard when it comes to the people they hire. They know that having experienced people making key decisions will allow them to be more successful. Therefore, they carefully scrutinize every person who applies for a job.

Making investments is a very risky business. Even the safest investments go south occasionally. With this in mind, HGGC has a formula that they use when they are trying to determine which industries they will invest in. They are not opposed to investing in just about anything. They are simply looking for the investments that have the most potential to generate significant profits at some point in the future. They have invested heavily in chemicals, infrastructure, healthcare, technology and many other things. They will never simply dive into an investment just because it looks promising. They will never put the money of their clients at risk unless they are convinced that the odds of losing it are very small.

The headquarters of HGGC can now be found in the town of Palo Alto, CA. There was no accident as to why the company is based in that particular city. The men who founded this company felt that being in the heart of Silicon Valley would give the company many unique opportunities to develop close contacts with big tech firms. It turns out that they were right. They have made investments over the years in many large tech companies. This have reaped very substantial profits.

HGGC is the envy of many of their competitors. This is because the company has been successful for over a decade with no signs of slowing down. Many people in the media have wondered aloud how they have been able to maintain their high rate of success where investments are concerned. The bottom line is that they have a stellar track record.

https://en.wikipedia.org/wiki/HGGC

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The HGGC middle-market private equity firm HGGC has been reporting remarkable growth figures over the past five years — doubling the amount of deal volume transactions over its previous five years of operation.

The company is based in Palo Alto, California, and was founded in 2007 by a team of financial industry all-stars and that includes a former NFL quarterback all-star. The latter is Steve Young who played for the San Francisco 49s, a team he led to three Super Bowl victories. Young was also inducted into the NFL Hall of Fame in 2005.

The financial heavy hitters who co-founded HGGC along side Mr. Young include Richard Lawson, Jon M. Huntsman, Gregory Benson and Robert C. Gay. As of today the firm has completed more than $12 billion in acquisition, liquidity and recapitalization events.

It’s interesting to look at three primary funds HGGC has administered since 2008.

Fund No. 1 was the debut offering which held a final close in March of 2009. It received $1.1 billion in investor commitments. HGGC has set a target of $1 billion.

Fund No. 2 launched in 2014 and received $1.3 billion in investor commitments. That surpassed a $1 billion target. It also reached a $1.25 billion voluntary hard cap. Investors of note included PKA-AIP of Denmark. They committed $125 million. Another investor was OPTrust, a Toronto-based firm. A variety of other international investors also contributed.

Fund No. 3 achieved $1.8 billion. It was launched in September of 2016 and closed in December of that year. The duration comprised just 99 days. The $1.84 billion in investor commitments garnered exceeded a $1.5 billion target goal. A $1.75 billion hard cap was reached and that excluded a commitment of $85 million.

The investment strategy of HGGC uses the tools of leveraged buyouts, growth equity investments and recapitalization. The company focuses its efforts on middle-market operations that are in dire need of updating their technological business model. The Palo Alto operation looks at companies that are out of date and out of step in terms of technology and breathes new life into them buy reshaping their technological operation profiles.

https://www.pehub.com/2018/06/hggc-closes-rpx-acquisition/