Unquote

HIG Europe Capital Partners III closes on €1.1bn

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HIG Capital has held a final close for HIG Europe Capital Partners III, its European lower-mid-market fund, on €1.1bn.

The vehicle started fundraising at the beginning of July with a €1bn target.

The fund is larger than its predecessor, which closed on €825m in July 2013, exceeding its €760m target after just three months on the road.

The vehicle has recently invested in DGS, an Italian IT company specialising in cybersecurity and digital transformation, generating annual revenues of around €115m.

The fund's portfolio also includes Project Informatica, an Italian company providing IT services, and computer hardware and software that generates revenues of around €130m; 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, and 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.

In addition, the GP registered a new vehicle in February, HIG Europe Middle Market, which is currently fundraising with a target of €2bn.

HIG is a global alternative asset management firm headquartered in Miami, with $42bn in equity capital.

Investors
HIG Europe Capital Partners III received support from HIG's global investor base, recording a high re-up rate.

Its LP base comprises a diverse group of institutional investors, including foundations, endowments, public and corporate pension funds, consultants, sovereign wealth funds, and family offices in North America, Europe, Asia and the Middle East.

LPs in the fund include OCERS and TCDRS, among others.

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

The fund targets companies generating EBITDA of €10-35m and operating across a wide range of sectors, including manufacturing, services, healthcare and IT.

"The current economic environment in Europe leaves us well-positioned to target control investments in complex situations and undermanaged lower-mid-market companies," said Wolfgang Biedermann, head of HIG Europe buyouts.

People
HIG Capital – Sami Mnaymneh, Tony Tamer (co-founders, co-CEOs).

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