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.