H.I.G. Closes Record Middle-Market Buyout Fund at $5.5B

H.I.G. Capital amassed $5.5 billion for its fourth middle-market leveraged buyout (LBO) fund, H.I.G. Middle Market LBO Fund IV. The fund also added $450 million in co-investment separately managed accounts.

HIG said it “significantly” exceeded its target, which will primarily make control equity investments in “complex situations” in US mid-market companies, with “asymmetric risk/reward profiles and a differentiated value proposition.”

“The resounding support of our limited partners led to a successful fundraise that was meaningfully oversubscribed during a very difficult fundraising environment,” said Jordan Peer Griffin, executive managing director and global head of capital formation.

The firm had raised $1.75 billion for its second middle-market LBO fund in 2014, before nearly doubling that amount for its third fund in 2019.

Miami-based H.I.G. manages $58 billion in alternative assets, specializing in providing both debt and equity capital to middle-market companies. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $52 billion.