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 The Palo Alto operation looks at companies that are out of date and out of step in terms of technology and breathes new life into them buy reshaping their technological operation profiles.