HIG raises €825m in just 3 months

Amy King
02 July 2013

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HIG Capital has held a final close of HIG European Capital Partners II on тЌ825m, exceeding the target of around тЌ760m, after just three months on the road.

HIG launched the vehicle in May 2013, according to documents filed with the US Securities and Exchange Commission (SEC), intending to raise the vehicle in a year, according to unquote" data.

"Firstly, I put the quick fundraise down to a strong investor base that has been with us for a very long time," Matthias Allgaier, managing director at HIG Capital, told unquote". "And secondly, the performance of previous vehicles is expected to be in line with returns seen in the US."

The SEC filing stated that the GP expected to reap $148.5m in overall management fees, equating to around 1.5% per annum. The fund is domiciled in the Cayman Islands.

The GP's previous Europe-focused fund, HIG European Partners, was launched in 2007 with a target of €500m. It closed on its hard-cap of €600m.

Investments
The vehicle will mirror the strategy of the preceding fund, focusing on buyout and growth capital investments in lower mid-market companies, primarily in western Europe. Germany, the UK, Benelux, France, Spain and Scandinavia will be of particular focus.

Equity cheques will range from €20-40m, Allgaier said, with 25-35 investments expected in total.

Privately-held companies and non-core subsidiaries of larger companies will be the vehicle's focus.

Investors
Previous backers of HIG including Allianz Group and Credit Suisse, alongside US investors including endowments, insurance companies and other private equity firms, have committed to the vehicle. The GP stated that the fund was "significantly over-subscribed" by existing HIG investors.

People
Sami Mnaymneh and Tony Tamer are co-founders and managing partners of HIG.