HGGC Receives Strategic Minority Investment from Dyal Capital
PALO ALTO, March 25, 2019 – HGGC, a leading technology-focused private equity firm, today announced that Dyal Capital Partners (“Dyal”), a division of Neuberger Berman, has acquired a passive non-voting minority stake in the firm. Terms of the transaction were not disclosed.
“We’re very excited to partner with Dyal Capital, which has a stellar reputation for investing in best-in-class firms” said Rich Lawson, Chairman, CEO and Co-Founder of HGGC. “Dyal’s investment provides HGGC with balance sheet capital to continue to develop our strong platform while increasing commitments to our own funds and strengthening alignment with our limited partners.”
“HGGC has very quickly become a premier middle market investment firm through its ‘Advantaged Investing’ model that creates true partnerships with founder-owners, management teams and sponsors,” said Michael Rees, Head of Dyal Capital. “We are excited to partner with HGGC given this differentiated approach, the strong and growing team, and the firm’s demonstrated commitment through being one of the largest investors across its own funds.”
The investment from Dyal will have no impact on the day-to-day management or operations of HGGC. The Firm’s investment and decision making-processes will also remain unchanged.
“Attracting this minority investment from Dyal is further evidence of our successful strategy and the results we are generating for our limited partners,” said Steve Young, President and Co-Founder of HGGC. “We look forward to putting this capital to work in growing our portfolio of great businesses.”
Since its founding in 2007, HGGC has completed more than 120 transactions representing nearly $20 billion and oversees portfolio companies that employ more than 62,000 people globally.
Evercore served as financial advisor and Kirkland & Ellis served as legal counsel to HGGC in this transaction.
HGGC is a leading middle-market private equity firm focused on technology investments with $4.3 billion in cumulative capital commitments. Based in Palo Alto, Calif., HGGC is distinguished by its “Advantaged Investing” approach that enables the firm to source and acquire scalable businesses at attractive multiples through partnerships with management teams, founders and sponsors who reinvest alongside HGGC, creating a strong alignment of interests. The firm’s current portfolio includes leading technology and technology-enabled businesses such as AutoAlert, Aventri, Davies Group, Dealer-FX, Denodo, Dynata, HelpSystems, IDERA, Innovative Interfaces, Integrity, iQor, Mi9, RPX and Selligent Marketing Cloud. More information is available at www.hggc.com.