H.I.G. Capital
Encyclopedia
H.I.G. Capital is an alternative investment firm that operates a family of private equity
and venture capital
funds as well as distressed debt
and public equity
hedge fund
s. The firm's roots trace back to middle-market leveraged buyout
s, management buyouts, leveraged recapitalization
s, and growth capital
investments.
The firm was founded in 1993 and is headquartered in Miami, Florida
with offices in Atlanta
, Boston, San Francisco in the U.S., and since fall 2007 London
, Paris, and Hamburg in Europe. Today the firm operates in several related sectors in private equity
and alternative investments:
and Sami Mnaymneh, formerly a managing director at The Blackstone Group. In 1993, the first HIG fund was originally launched with a $73 million hybrid leveraged buyout
/ venture capital
fund, drawing on the backgrounds of its two founding partners. Since its founding, H.I.G. had raised nine investments funds as of 2008:
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
and venture capital
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
funds as well as distressed debt
Distressed securities
Distressed securities are securities of companies or government entities that are either already in default, under bankruptcy protection, or in distress and heading toward such a condition. The most common distressed securities are bonds and bank debt...
and public equity
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
hedge fund
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
s. The firm's roots trace back to middle-market leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
s, management buyouts, leveraged recapitalization
Leveraged recapitalization
In corporate finance, a leveraged recapitalization is a change of the capital structure of a company, a substitution of equity for debt —e.g. by issuing bonds to raise money, and using that money to buy the company's stock or to pay dividends...
s, and growth capital
Growth capital
Growth capital is a type of private equity investment, most often a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business.Companies...
investments.
The firm was founded in 1993 and is headquartered in Miami, Florida
Miami, Florida
Miami is a city located on the Atlantic coast in southeastern Florida and the county seat of Miami-Dade County, the most populous county in Florida and the eighth-most populous county in the United States with a population of 2,500,625...
with offices in Atlanta
Atlanta, Georgia
Atlanta is the capital and most populous city in the U.S. state of Georgia. According to the 2010 census, Atlanta's population is 420,003. Atlanta is the cultural and economic center of the Atlanta metropolitan area, which is home to 5,268,860 people and is the ninth largest metropolitan area in...
, Boston, San Francisco in the U.S., and since fall 2007 London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, Paris, and Hamburg in Europe. Today the firm operates in several related sectors in private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
and alternative investments:
- H.I.G. Capital – Private EquityPrivate equityPrivate equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
– A $3.5 billion platform focusing on leveraged buyoutLeveraged buyoutA leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
s, management buyouts and leveraged recapitalizationLeveraged recapitalizationIn corporate finance, a leveraged recapitalization is a change of the capital structure of a company, a substitution of equity for debt —e.g. by issuing bonds to raise money, and using that money to buy the company's stock or to pay dividends...
s of established and profitable manufacturing and service companies as well as growth capitalGrowth capitalGrowth capital is a type of private equity investment, most often a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business.Companies...
investments in less mature companies. The company is lead by Managing Partners; Sami Mnaymneh and Tony Tamer.
- H.I.G. Europe – Private EquityPrivate equityPrivate equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
– The European affiliate of H.I.G. Capital with offices in London, Paris and Hamburg focuses on middle market transactions investing from a dedicated €600 million European private equity fundPrivate equity fundA private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
. In 2007, H.I.G. Europe received the "Fund of the Year" award from the European Private Equity and Venture Capital Association (EVCA). The company is lead by a team of 6 Managing Directors including; Paul Canning and Matthias Allgaier who work within the UK offices.
- H.I.G. Ventures – Venture CapitalVenture capitalVenture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
– A $525 million venture capital practice, H.I.G. Ventures invests in growth stage and expansion stage companies, specifically in the information technology, life sciences and business services sectors. The company is run by Managing Directors Aaron Davis and Bruce Robertson.
- Bayside Capital – Distressed securitiesDistressed securitiesDistressed securities are securities of companies or government entities that are either already in default, under bankruptcy protection, or in distress and heading toward such a condition. The most common distressed securities are bonds and bank debt...
– a $3.5 billion special situations platform, Bayside makes investments in companies with distressed or over-leveraged balance sheets, through a variety of investments including equityStockThe capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
infusions; secondary market purchases of debt throughout the capital structureCapital structureIn finance, capital structure refers to the way a corporation finances its assets through some combination of equity, debt, or hybrid securities. A firm's capital structure is then the composition or 'structure' of its liabilities. For example, a firm that sells $20 billion in equity and $80...
; out of court restructurings, turnarounds and bankruptcies; debtor in possessionDebtor in possessionA debtor in possession in United States bankruptcy law is a person or corporation who has filed a bankruptcy petition, but remains in possession of property upon which a creditor has a lien or similar security interest...
(DIP) financings and special situations lending. The company is run by Exec. Managing Director John Bolduc and a team of Managing Directors.
- Brightpoint Capital – Public equitiesStockThe capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
– Operating as a hedge fundHedge fundA hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
, Brightpoint invests primarily in small and mid-capitalization publicly traded companies and, to a lesser extent, in less liquid, non-control investments.
History
H.I.G. was founded in 1993 by Anthony (Tony) Tamer, previously a partner at Bain & CompanyBain & Company
Bain & Company is a global management consulting firm headquartered in Boston, Massachusetts. Bain is considered one of the most prestigious consulting firms in the world, with 47 offices in 30 countries and over 5,500 professionals on staff globally...
and Sami Mnaymneh, formerly a managing director at The Blackstone Group. In 1993, the first HIG fund was originally launched with a $73 million hybrid leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
/ venture capital
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
fund, drawing on the backgrounds of its two founding partners. Since its founding, H.I.G. had raised nine investments funds as of 2008:
- H.I.G. Capital Partners I (1993) - $125 million hybrid fund focused on both leveraged buyouts and venture capital
- H.I.G. Capital Partners II (1998) - $255 million fund, focused on leveraged buyouts
- H.I.G. Venture Capital (1999) - $225 million fund, focused on venture capital
- H.I.G. Capital Partners III (2002) - $450 million fund, focused on leveraged buyouts
- Bayside Opportunity Fund (2004) - $500 million fund, focused on distressed securitiesDistressed securitiesDistressed securities are securities of companies or government entities that are either already in default, under bankruptcy protection, or in distress and heading toward such a condition. The most common distressed securities are bonds and bank debt...
- H.I.G. Venture Partners II (2005) - $300 million fund, focused on venture capital
- H.I.G. Capital Partners IV (2006) - $750 million fund, focused on leveraged buyouts
- H.I.G. European Capital Partners (2007) - €600 EUR million fund, focused on European leveraged buyouts
- H.I.G. Bayside Debt and LBO fund II (2008) - $3 billion fund, focused on distressed securitiesDistressed securitiesDistressed securities are securities of companies or government entities that are either already in default, under bankruptcy protection, or in distress and heading toward such a condition. The most common distressed securities are bonds and bank debt...
- H.I.G. Litigation with sellers made public (2011) - Seller sues H.I.G. Capital, "http://www.tampabay.com/news/business/faced-with-83-million-bill-tampa-doctor-confronts-investment-firm/1199044." Tampa Bay Times
External links
- H.I.G. Capital (company website)
- H.I.G. Capital Profile (BusinessWeekBusinessWeekBloomberg Businessweek, commonly and formerly known as BusinessWeek, is a weekly business magazine published by Bloomberg L.P. It is currently headquartered in New York City.- History :...
) - "HAPPY KIDS, CHILDREN'S WEAR COMPANY, ACCEPTS BID." New York Times, September 18, 1999
- "H.I.G. Capital to Finance Shapes Bankruptcy." New York Times, May 12, 2008
- "US firm H.I.G. Capital closes fourth buy-out fund on $750m." AltAssets, September 19, 2006
- "http://www.tampabay.com/news/business/faced-with-83-million-bill-tampa-doctor-confronts-investment-firm/1199044." Tampa Bay Times, October 30, 2011