H.I.G. Capital slows pace for platforms

H.I.G. Capital provided no additional comment on its deals, but information on portfolio companies and deal announcements is available on its website.

In 2014, the $17 billion AUM private equity manager bought 18 platform companies, down from 21 in 2013 and 23 in 2012. It currently lists more than 100 active portfolio companies on its website.

It also inked 19 add-on deals in 2014. H.I.G. did not release a list of add-on deals from 2013 for comparison.

The firm’s InterDent Inc platform drew the most activity, with the additions of Dream Dental, Leisure Dental, Paradise Dental, Southwest Dental and Synergy Dental Practice. Based in Inglewood, Calif, InterDent runs dental offices often under the Gentle Dental brand name. H.I.G. Capital purchased InterDent Inc in 2012.

JW Resources, H.I.G. Capital’s thermal and metallurgical coal platform based in Knoxville, Tenn, made two add-on deals: Middleboro Mining and Appolo Fuels. H.I.G.’s Bayside Capital unit completed the deal for Appolo fuels in March 2014, including 33,000 acres of coal reserves in the Central Appalachian Coal basin.

Fundraising and personnel

H.I.G. Capital has also been active on the fundraising trail. It closed its HIG Middle-Market LBO Fund II at $1.75 billion last year, and it is currently raising Bayside European Real Estate Fund, which has a $500 million target, and H.I.G. Bayside Loan Opportunity Fund IV, which is targeting $1 billion, according to private equity data provider Bison.

H.I.G. Capital Partner V, a lower middle-market buyout fund, hit its hard cap in 2013 with $1 billion. The fund drew backing from Massachusetts Pension Reserves Investment Management Board and others.

On the personnel front, H.I.G.’s Brian McMullen, a former principal on its middle-market investing team, left the firm recently after joining it in 2002 from Credit Suisse First Boston, according to a Jan. 17 report by Buyouts. Tim Armstrong, a managing director in H.I.G.’s middle-market business, was to leave the firm this year, an executive at the firm told Buyouts in December.

Meanwhile, the firm said Feb. 2 it hired Riccardo Dallolio as managing director and co-head of European real estate in its London office. Prior to H.I.G., Dallolio worked at AXA RE as head of alternatives and special situations.   

Founded in 1993, H.I.G. Capital is led by Co-CEOs Sami Mnaymneh and Tony Tamer. Mnaymneh previously worked at Blackstone Group, while Tamer worked at Bain & Co.

Correction: The headline and a bullet point were changed due to an editing error.