HGGC: a Hall of Fame Private Equity Firm

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.

https://www.businesswire.com/news/home/20181001005110/en/Colin-Phinisey-Joins-HGGC-Lead-Capital-Markets

Jeunesse Global on the Importance of Branching Out

Jeunesse Global has a powerful grip over the beauty and wellness industry in America today. They are trying to make a difference in the level of integrity that can be found within the field, as they believe that there are far too many companies that try to exploit their demographic for money. In their eyes, this is an abomination, and they want to ensure that the service they provide is far better than that. To do this, they have to consider the perspective of the customer

If the customer is interested in what they have to sell, then that is all you truly need from a product. Jeunesse Global, however, takes it a step further. They believe that they should try to genuinely create a better product than the last one they made. If they are working as hard as they can to produce revolutionary anti-aging products, then they will ultimately have a much larger impact on the current state of the world, and when it comes down to it, this is their goal. 

Jeunesse Global has a vision, and it is not limited to short-term success in America. Many companies can find success in America, but Jeunesse Global wants to do more than that; they want to inspire an entire new generation of young individuals to chase after their dreams regarding the beauty industry. Many societal influences in the modern era try to deter people from entering the field because they say it will not be profitable, but this company is a clear-cut example that proves this is not the case. As long as you are passionate about the items you are trying to sell, you will have a good chance at getting into the hearts of your consumers. This is what Jeunesse Global has always tried to do, and it has proven to be quite successful over the time they have spent on the market. Their consistently high sales indicate that consumers are extremely fond of what they have to offer, but it also shows that they are willing to give the company a chance if they feel like branching out.

https://www.crunchbase.com/organization/jeunesse-global-2

Wondering What Future Lies Ahead, HGGC Brightest Plans Ever?

HGGC, a prominent California-based technology buyout firm, restructures leadership, as it embraces Neuberger Berman subsidiary alliance. Neuberger Berman Group’s primary acquisition vehicle, Dyal Capital Partners joins HGGC’s family of investors as a minority stakeholder. It maintains that the “Advantaged Investing Strategy” won’t deviate from its core vision.

The billionaire private equity holding has since appointed executive successors, enlisted new team players, and elected future shareholders. Les Brown, Steven Leistner, Lance Taylor, Jack Block, and Harv Barenz made partner. All talents have assumed pivotal corporate roles, where they’ve spearheaded various core projects for the investment giant.

Harv Barenz manages the firm’s business development side. He’s held this position since 2008 when he began his journey with HGGC. Steven Leistner joined the family the following year. He heads the manager’s fund series investments, which comprises of Dynata, Denodo, iQor, Selligent, etc. Les Brown has been around since inception. A former Dynata board representative, Brown now chairs Nutraceutical International Corporation.

Another fund series investments expert, John Block, started working with the group in 2010. He’s managed some of the firm’s elite clientele like Citadel, Hybris and Hollander. His current portfolio includes HelpSystems, Pearl, Davies Group, Mi9, FPX, Aventri, Innovative, and Integrity.

The CFO, Lance Taylor, also has an incredible background. He’s been a pivotal agent in ensuring optimal performance of HGGC’s accounting finance ecosystem. He’d functioned in a similar role with his previous employer, Calera Capital. In addition to his primary role as CFO Taylor was the firm’s CCO and MD.

Founders Steve Young, Gregory Benson, Bob Gay, and Richard Lawson established HGGC in 2007. The team strives to connect with sponsors, entrepreneurs, and senior executives across North America. As experienced relationship investors, they’re leveraging a strategic partnership model to scale differentiated middle-market companies through an advantageous collaboration.

It sources these collaborative experiences through recapitalizations, liquidity events, platform investments, add-on acquisitions, etc. Today, HGGC’s net value stands at $20 billion, of which, 21.5 percent accounts for cumulative commitments. Throughout its operational timeline, it’s accomplished 120 successful platform investments. The group takes a keen interest in the following sectors: software, healthcare, consumer, industrial, and information services.

https://www.iam-media.com/defensive-aggregation/rpx-board-accepts-555million-purchase-offer-palo-alto-private-equity-fund

Shervin Pishevar Epic Tweets Cover Bitcoin, Big Tech, and Stocks

It can be an eye-opening experience to watch the tweets from a forward-thinking investor, such as Shervin Pishevar. Some of his latest investments were Dollar Shave Club and Uber. He used Twitter to spell out his next predictions for the US stock market, Bitcoin, and technology companies. All in all, his tweets ran on for over 20 hours, and he covered other topics, such as immigration, borders, and space exploration. Other than a break to eat dinner, Shervin Pishevar took the time to cover a lot of economic ground in an epic Twitter monologue.

Pishevar covered the stock market. He pointed out that recent gains have already been washed down the drain, and he predicts that it will not be long before this year’s profits are lost too. Washington may be to blame for some of the problems he thinks are on the way, and the old-school bond market tricks will not work this time. Shervin Pishevar calls the technique a genie that is out of the lamp. Once out of the bottle, you can not go back in. The federal government’s tactics for dealing with the economy have been rendered obsolete because they have never use anything else. Pishevar worded it as a system that has lost its sharp edge.

If you are looking for someplace to stash your cash, Shervin Pishevar tweets about gold. Gold will increase according to his tweets, and cryptocurrency will stabilize also. Currently, Bitcoin had been on a roller coaster of a ride in the stock market, but Pishevar tweets it will settle. Once cryptocurrency stabilizes, in about two years, it will begin to increase steadily.

Big tech companies centered in California are going to have to learn some new rules. The game is changing and moving innovation around the world and to a border free and state free platform. Shervin Pishevar wants to know why we are building physical walls to keep people out when they do not need to come here. New innovators are blazing new paths, which do not all lead to Silicon Valley anymore. These fresh thinkers will be cashless and borderless.

https://genius.com/Shervin-pishevar-platform-lyrics

Nitin Khanna and The Point of A Business

Nitin Khanna was able to understand the fundamentals of business and earning because of his exposure to business early on in life. His dad went to the army but many of his family members were present within the business sector. As such, he was to learn about business and why it mattered and how to move in a concrete manner to be safe and realize gains each and every single day. Nitin Khanna understood a couple of key principles in his life.

One of these principles that barriers matter and scales matter as well. If Nitin Khanna were to elaborate on this point, he would state that while industries may be simple to break into at a regional level, that it would be much more difficult to scale as more resources would be needed and more investments overall. The business would have to understand how to attract customers, go against incumbents and take market share. This certainly was much easier said than done.

The more barriers that are present within an industry, the more difficult it becomes to sustain over the long term. Nitin Khanna slowly understood over his time in business how value is accrued and how it matters that individuals are able to have cashflows that will continue into the distant future.

As a business is judged by its future income streams, the more stability there is, the better. Investors would expect to see stability and growth, as real money is involved and people worked hard to invest and grow their earnings in the business.

As such, a competitive advantage such as barrier to entry becomes of key importance to a business such as the one that Nitin Khanna is involved in. As the point of a business is to make a difference in society, to serve a specific purpose and move the needle, individuals have to make certain to make sure they are able to protect their cash spitting machine.

A business has to be durable and it has to matter each day to customers. The lifeblood of a business is the customers and the cash that they bring. Protecting cash flows matter to business owners.

Read Khanna’s success story here https://yourstory.com/mystory/48e163e5d2-nitin-khanna-an-nri-who-made-it-big-in-portland-oregon

Analyze Credit Like Max Salk

The credit markets are an important part of the financial system. Lenders are usually more conservative than equity holders and expect to receive their money back with interest. As such, lenders are known to be more conservative because they know that they will not make a significant portion of money but will be able to have the right slow and steady returns over time from top notch companies if they invest correctly. Bondholders don’t gain from the upside of owning the company via equities like stock but they are able to minimize their risk and add a little more capital to their initial capital each day. Bondholders are fans of yield and continuous payments per year. They lend out their money and expect to receive a certain level of return for the risk that they are taking.

 

As such, it is important to watch what the credit markets do and what these participants within these markets do. A larger appetite for risk within these markets show that the economy is booming, much less appetite for risk show that these markets are contracting for some reason or other. It is important to pay attention to these markets to understand how equities might play out as well.

 

Max Salk Analyzes Credit to Understand Markets

Max Salk may look at stocks that track high yield corporate bond instruments such as iShares iBoxx $ High Yield Corporate Bond (HYG) and compare that with the iShares 7-10 Year Treasury Bond tracker (IEF). The higher the ratio, the better that it may be for the economy. This shows that investors and bondholders are interested in high yield corporate debt, and remember, high yield corporate debt usually means that individuals have to take on more risk.

If they have to take on more risk within these credit markets, they will usually expect these companies to have the ability to pay these bonds back. They expect these companies to pay these bonds back because they think that the economy is doing well and that these companies are in a position to capture the interest of consumers. As such, it follows that the better these bondholders think that the economy is doing the more risk for appetite, the higher the appetite for risk, the more that stocks should go up.

Max Salk may look at these types of ratios and others to understand how the credit markets are doing in the present and how they might do in the future.

https://www.maxsalkphotography.com/

https://interview.net/max-salk-photographer-investment-analyst/