HIG Capital launches HIG European Capital Partners III

Unquote understands that the fund has a target of more than €830m and the fundraising started at the beginning of July.

The fund will invest in buyouts, recapitalisations and corporate carve-outs of both profitable and underperforming manufacturing and service mid-market businesses based across Europe, with a special focus on southern Europe and the DACH region. 

The fund will be larger than its predecessor, HIG European Capital Partners II (HECP II), which closed on €825m, exceeding its €760m target, in July 2013, after just three months on the road.

The vehicle has recently acquired a controlling stake in Project Informatica, an Italian company providing tailor-made IT services as well as hardware and software, which generates revenues of around €130m. Intesa San Paolo, UBI Banca, MPSCS and Banco BPM provided a debt package to support the deal. HIG intends to boost the company's growth both organically and via new acquisitions, with the aim of creating a consolidation platform across the IT services sector.

In addition to Project Informatica, the portfolio of HECP II also includes Spanish gin producer Puerto de Indias, bought in February 2018; Italian labels manufacturer Cadica, bought from private equity firm Gradiente in May 2019; Plixxen, which was established following the carve-out of the European polyurethane business of German polymer specialist Covestro in June 2019; Italy-based Metalprint, a manufacturer of brass and aluminium industrial components, acquired in July 2019, which generates revenues of around €70m; and French sports media agency Sportfive, created after the carve-out of Lagardère Sports from media conglomerate Lagardère in December 2019.

Alongside its European business, led by HIG Europe, the firm is also currently investing from Growth Buyout Equity Fund III, which closed on $970m in October 2018 and targets mostly North American businesses, but also considers some European opportunities.

Headquartered in Miami, with European offices in London, Hamburg, Madrid, Milan and Paris, HIG has around €34bn in capital under management and a portfolio that currently includes more than 100 companies with combined sales in excess of €27bn.

In addition to its equity strategy, HIG also manages its WhiteHorse credit affiliate, which provides flexible debt financing to mid-market companies based in Europe and the US. The firm offers unitranche, senior and subordinated debt for refinancing, growth capital operations, acquisitions, buyouts and balance sheet recapitalisations. Credit facilities typically range between €10m and €75m for companies generating revenues of more than €40m.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Funds
• Buyout
• Southern Europe
• DACH
• France
• Benelux
• UK / Ireland
• Nordics
• CEE
• HIG Capital
• HIG Europe