HGGC: A Pioneer in the Private Equity Investment Industry

HGGC, LLC is a privately owned equity firm with expertise in a variety of equity accounts to include leveraged buyouts, corporate carve-outs, and platform investments. The firm also has a diverse investment portfolio in business services, healthcare, and information services among many others. The company has the majority of its investments in North America but is also open to international opportunities. In most cases, the firm invests $25 million-$125 in a company that it feels has a potential for growth and success.

Recently, the firm made an announcement that it will be increasing the size of its team by adding six new hires in the financial, operations, and investment departments. The new hires come from highly successful companies and bring a wealth of knowledge and experience with them to help HGGC achieve its goals of continued growth. Colin Phinisey will be a Principal with the company and be in charge of capital markets accounts. He has a banking background and extensive experience in capital markets. Mr. Phinisey recently was a director at Deutsche Bank Securities Inc. for over eight years.

On September 27, 2017, FPX, announced that it had received an investment from HGGC. The amount of teh investment was not disclosed. FPX was acquired by HGGC in 2016. FPX specializes in Configure Price Quote(CPQ) solutions. HGGC is respected for its investment success in a variety of businesses. The company has aggregate investment values of over $15 billion and has notable investments in Hybris, MyWebGrocer, and Selligent. Richard Lawson COO of HGGC believes that FPX will soon dominate the CPQ market and that the investment will be well worth it. Prior to the investment, FPX had experienced tremendous growth and opened a European headquarters in Munich, Germany. During this same period, it expanded its operations in London. Senior Management leaders also created partnerships with SAP and Microsoft along with strengthening the international management team. FPX CEO Dave Batt commended the investment into the company and said it was a testament to the hard, success, and vision of the company. He feels that the market is constantly evolving and that more businesses will need CPQ solutions.

https://www.linkedin.com/company/hggc

Effects of the Amex deal on GreenSky’s performance and operation

GreenSky is said to have won a jackpot after its recent partnership with American Express. This FinTech Company is privileged to have partnered with American Express as they now have access to the company’s merchant base. GreenSky is not the only one expected to benefit from this merger, its merchant anticipates gaining in the next couple of months.

GreenSky’s change projection

The company looks forward to increasing their merchant base from the current 13,440 to about 30,000. The transaction volume of each merchant is also expected to stabilize. In the years 2015-2017, the company experienced a drop in merchant volume from $409,000 to about $346,000. With the new partnership, the volume is anticipated to reach $290,000. Merchant transaction fee will also reduce to attract more organizations.

Customers are also expected to profit from this union. The company expects to increase client accounts to twice the existing number. Fortunately, loans per client account and loan fees will not be affected in any way as this deal will not alter any of these sectors. Additionally, the EBITDA margin will remain the same as the Amex deal has minimal or no effect on the company’s operating costs.

About GreenSky

GreenSky is a company that pioneers in the issuance of loans through banks and merchants. Some of the organizations it works with include Sun Trust Banks and the Regional Financial Corp. The organization offers financial credit to customers looking to access specialized healthcare such as cosmetic surgery and home improvement solutions. The institution caters to customers scattered across the United States but the company’s headquarters’ is in Georgia. Since 2012 to date, the company credit program has offered loans to consumers worth billions of dollars.

GreenSky does not operate as a bank. In fact, it considers itself a tech company and employs a credit program that is SSAE 16 Type II compliant. By 2015, the firm was looking to set up operations in the Cincinnati area and parts of Kentucky. This financial organization is considered a profitable institution. In 2016, its chief executive officer David Zalik was recognized as the National EY Entrepreneur of the Year for stabilizing the firm. Recently, the company launched an Initial Public Offering that saw the issuance of shares worth 34.09 million.

https://www.forbes.com/sites/greatspeculations/2018/09/05/greensky-now-looks-undervalued-given-strong-q2-performance-alliance-with-amex/#5d78658d5eda