There are a number of private equity companies that come and go with each bull and bear market. However, one private equity company is looking to make its impression known over the long term. That company, HGGC, is known as one of the premier private equity firms in the tech arena.
HGGC is a Palo Alto based private equity firm that has over $4.25 billion in investment commitments spread over a number of mostly technology focused start-ups. Key figures at the firm include Gregory M. Benson, Richard F. Lawson, Leslie M. BrownJr., Neil H. White, and 3-time Super Bowl winning quarterback Steven Young. Founded in 2007, the firm has invested in over 60 companies.
Some of the more notable investment by HGGCs include AutoAlert, RPX, HelpSystems, IDERA, FPX, Davies Group and My WebGrocer. The company has raised capital through three closed funds. The first fund, known as “Fund 1,” has over $1.1 billion in investment capital. “Fund 2” has over $1.3 billion in investment capital. And finally, “Fund 3” has $1.8 billion in investment capital. Some of the notable investors of these funds include Pennsylvania Public School Employees’ Retirement System (PSERS), The California Public Employees’ Retirement System (CalPERS), CNP Assurances, and the West Yorkshire Pension Fund.
HGGC is known as a “Mid-Market” private equity firm. That means makes investments in $25 million to $125 million dollar price range. In its 11 years in operation, the firm has received a number of awards including 2014 M&A Mid-Market Private Equity Firm of the Year by Mergers & Acquisitions magazine.
One of the secrets that has made HGGC so successful is its strategy of invest in “disruptive” mid-market companies who compete against outdated large market companies. For instance, My WebGrocer is looking to disrupt the outdated supermarket sector. And AutoAlert is looking to disrupt the auto sales business. With this unique, disruptive strategy, HGGC is becoming a force to be reckoned with in the private equity world.