H.I.G.’s new mid-market fund seen as ‘one and done’

H.I.G. Middle Market LBO Fund II LP has a target of $1.6 billion, according to a Form D filing for the fund.

“It’ll be fairly quick – one and done,” an executive at a private equity investment firm told Buyouts.

The $12 billion Maine Public Employees Retirement System committed up to $60 million to H.I.G. Middle Market LBO Fund II LP at its Nov. 14th board meeting, according to an email to Buyouts from Andrew Sawyer, chief investment officer of MainePERS.

The fund’s predecessor, the vintage H.I.G. Middle Market Fund, targeted transactions with enterprise values from $200 million to $1 billion.

Other LPs in various H.I.G. funds include Texas County & District Retirement System, Massachusetts Pension Reserves Investment Management Board, Pennsylvania State Employees’ Retirement System, District of Columbia Retirement Board and the Kentucky Retirement System.

It’s been a busy year on the fundraising front for H.I.G.

In July, it announced it closed H.I.G. European Capital Partners II at $1.1 billion, above its  target. In May, H.I.G. Bayside Loan Opportunity Fund III (Europe), a vehicle for stakes in debt obligations of small and medium-sized European companies, beat its $1 billion target. 

And in March, H.I.G. Capital closed H.I.G. Capital Partners V at $1 billion after being on the road for less than four months, according to Preqin.

Interest in the firm founded by Sami Mnaymneh and Tony Tamer comes after some strong performances by its earlier funds.

The vintage 2006 H.I.G. Capital IV fund posted a 42.6 percent IRR as of Sept. 30, 2012 for the Regents of the University of California.

The vintage 2002 H.I.G. Capital Partners III LP logged an IRR of 25.3 percent as of Dec. 31, 2012 according to results from Mass PRIM.

In its most recent announced deal, H.I.G. Europe sold Europe Support Services to Bilfinger SE for an undisclosed sum.

H.I.G. Capital did not return an email from Buyouts.