HGGC is one of the leading middle-market private equity company with cumulative capital investments worth more than 4.3 billion dollars. It’s headquartered in Palo Alto, Calif. The firm is well-known for its advantaged Investing strategies that it uses to source and possess scalable business opportunities at attractive multiples via trade partnerships with its founders, sponsors who reinvest with it, and management teams thus creating a secure arrangement of interest. In its history, HGGC has accomplished more than 60 platform investments, acquisitions, and liquidity transactions with an aggregate market value of above $15 billion.
On September 27th, 2017, FPX, which is one of the leading business in CPQ solutions, did announce that indeed it had received an unrevealed investment from HGGC, which is its funding partner. HGGC which took over FPX in April 2016, is providing capital in its efforts to achieving global expansion, fast-track product development, and further improve its network and strategic partnerships. HGGC is celebrated for its achievement of its investment in firms competing in the market for online business platforms and interrelated applications. After making transactions worth over 15 billion dollars, this firm has been behind the outstanding investments and exits, which included Hybris, Selligent, and MyWebGrocer.
According to Rich Lawson who is the current CEO and Co-founder of HGGC, FPX is on the edge of realizing an exciting opportunity to control the CPQ market, and with the funding and the commitment, the firm can be propelled into a prime position. He also said that after analyzing all the vendors in the space, only FPX proved to have a vision, product competence, talent, and unsurpassed domain expertize to be the market leader. The funding followed an era of extreme growth for FPX, which enabled the firm to open European headquarters in Germany. It also stretched its presence in London, England. The executive has also reinforced the global management team, and established partnerships with strategic partners such as Microsoft to mention a few. Dave Batt, the CEO of FPX, also said that the endorsement they got from the company backed by financial assistance from the firm is indeed a blessing as it shows how strong their vision is.
In the year 2007, a group of partners led by Robert Gay and Jon Huntsman came together. They established what is now one of the leading private equity firms in the globe. At the time, Gay was a well-connected managing director at Bain Capital, and Huntsman was the CEO-cum-founder of a manufacturing company named after him. Bringing together their know-how, they founded H&G Capital Partners.
The firm kicked off on a high note. The name, however, became an issue due to its similarity with that of another firm called HIG Capital. Following the filling of a lawsuit by HIG Capital, H&G Capital Partners had to change its title to Huntsman and Gay Global Capital in honor of its two senior most founding partners. This title was however short-lived as in the year 2013, following the departure of both of these partners; the firm adopted the title HGGC.
Its growth and operation
Over the years, the company has managed to acquire 4.3 billion dollars’ worth of cumulative capital. Additionally, the firm boasts of seventeen billion dollars’ worth of platform investments, acquisitions, liquidity and recapitalization endeavors, recapitalization transactions and leveraged buyouts.
HGGC is mainly invested in mid-cap and middle market companies that are both in the public and private sector. Furthermore, it has a keen interest in companies that are in the process of adapting to new technology. Such companies like car dealerships, insurance companies, and grocery stores are on a path to great expansion which will lead to more income. Additionally, HGGC invests in a number of industries including technology, healthcare, infrastructure, manufacturing, finance, chemicals, software and information service sectors among others.
A crucial requirement that HGGC has when it comes to companies it invests in is that they must have a hundred up to five hundred million dollars’ worth of enterprise value, annual revenue ranging between a hundred million and a billion dollars and an EBITDA of fifteen million up to seventy-five million dollars. The reason is that HGGC places investments of up to a hundred and twenty-five million dollars and not less than twenty-five million; hence the companies must match up to these amounts