LPs

HGGC plans Q1 final close for Fund II

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  • Within striking distance of $1.25 bln hard cap
  • To focus on consumer, industrial and information services deals
  • Fund I nets 20 pct IRR through Sept. 30

PSERS approved a commitment of up to $100 million at its Jan. 21 meeting.

HGGC, a Palo Alto-based middle-market firm, will use Fund II to make control investments in eight to 10 companies, typically investing between $100 million and $150 million of equity per deal, with LP co-investments. While HGGC can invest across a broad range of sectors, PSERS’ documents emphasize that the firm plans to invest in consumer, industrial and information services companies.

In November, HGGC acquired a controlling stake in Survey Sampling International, a consumer research, data and technology company based in Connecticut.

HGGC is led by co-founder and CEO Rich Lawson.

HGGC’s previous fund, a $1 billion 2008 vintage, netted a 1.7x multiple and 20 percent IRR through Sept. 30, according to PSERS.