HGGC, LLC is a private equity firm that specializes in significant transformations for middle market companies. The talented team of professionals has years of deal and operational experience. They seek companies they can partner with to create a situation where everybody wins. As part of the agreement,the firm looks to take a majority position in the company, but they will also take a minority position if they retain control rights.
When looking for deals, HGGC targets companies that have revenues between $100 million and one billion dollars and an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) between $15 million and $75 million. Target companies have a market value of $100 million to $500 million. Companies can be either private companies or publicly traded companies. The typical investment size of each deal is $25 million to $125 million. The firm focuses on companies in the business services, financial services, healthcare, industrial services, chemicals, infrastructure, information services, manufacturing, consumer products, software, and technology sectors.
HGGC specializes in many types of transformations. When thinking of a private equity firm, most people expect leveraged buyouts, acquisitions, or taking a public company private. In addition to those kinds of projects, HGGC also works with partner companies to deliver platform upgrades or complete restructuring projects.
In 2018, HGGC took a public company named RPX private. RPX is a leading provider of patent risk and discovery management. This was the second take-private deal in the firm’s history. At the time of the transaction, RPX CEO Marty Roberts said, “being a private company will enable us to leverage our core strengths to drive value over the long term.” The deal is a winning situation for RPX because they now have access to capital through NGGC instead of having to raise or borrow money as a public company. NGGC also provides resource and operational expertise. The deal is a win for NGGC because they can now share in the profits of a growing business.
Formed in 2007, HGGC has a total transaction value of over $20 billion. They currently have $4.3 billion in cumulative commitments across 118 investments. NFL Hall of Fame quarterback Steve Young is one of the founders. In 2014, the firm was named M&A Mid-Market Private Equity Firm of the Year by Mergers & Acquisitions magazine.