Dyal Capital to buy minority of HGGC

HGGC said March 26 that Dyal Capital Partners has acquired a passive non-voting minority stake in the firm. Financial terms weren’t announced. HGGC said the investment will have no impact on its day-to-day management or operations.

HGGC Receives Strategic Minority Investment from Dyal Capital
Capital Infusion to Drive Continued Growth of Successful Technology-Focused Firm
PALO ALTO, Calif.—March 26, 2019—HGGC, a leading technology-focused private equity firm, today announced that Dyal Capital Partners (“Dyal”), a division of Neuberger Berman, has acquired a passive non-voting minority stake in the firm. Terms of the transaction were not disclosed.
“We’re very excited to partner with Dyal Capital, which has a stellar reputation for investing in best-in-class firms” said Rich Lawson, Chairman, CEO and Co-Founder of HGGC. “Dyal’s investment provides HGGC with balance sheet capital to continue to develop our strong platform while increasing commitments to our own funds and strengthening alignment with our limited partners.”
“HGGC has very quickly become a premier middle market investment firm through its ‘Advantaged Investing’ model that creates true partnerships with founder-owners, management teams and sponsors,” said Michael Rees, Head of Dyal Capital. “We are excited to partner with HGGC given this differentiated approach, the strong and growing team, and the firm’s demonstrated commitment through being one of the largest investors across its own funds.”
The investment from Dyal will have no impact on the day-to-day management or operations of HGGC. The Firm’s investment and decision making-processes will also remain unchanged.
“Attracting this minority investment from Dyal is further evidence of our successful strategy and the results we are generating for our limited partners,” said Steve Young, President and Co-Founder of HGGC. “We look forward to putting this capital to work in growing our portfolio of great businesses.”
Since its founding in 2007, HGGC has completed more than 120 transactions representing nearly $20 billion and oversees portfolio companies that employ more than 62,000 people globally.
Evercore served as financial advisor and Kirkland & Ellis served as legal counsel to HGGC in this transaction.
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About HGGC
HGGC is a leading middle-market private equity firm focused on technology investments with $4.3 billion in cumulative capital commitments. Based in Palo Alto, Calif., HGGC is distinguished by its “Advantaged Investing” approach that enables the firm to source and acquire scalable businesses at attractive multiples through partnerships with management teams, founders and sponsors who reinvest alongside HGGC, creating a strong alignment of interests. The firm’s current portfolio includes leading technology and technology-enabled businesses such as AutoAlert, Aventri, Davies Group, Dealer-FX, Denodo, Dynata, HelpSystems, IDERA, Innovative Interfaces, Integrity, iQor, Mi9, RPX and Selligent Marketing Cloud. More information is available at www.hggc.com.
About Dyal Capital Partners
Dyal Capital Partners, a division of Neuberger Berman Group, seeks to acquire minority equity interests in institutional alternative asset management businesses worldwide. Dyal Capital Partners was established in 2011 and currently has 38 minority partnerships. For more information, please visit www.dyalcapital.com.
About Neuberger Berman
Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 22 countries, Neuberger Berman’s team is more than 2,000 professionals. For five consecutive years, the company has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). Tenured, stable and long-term in focus, the firm fosters an investment culture of fundamental research and independent thinking. It manages $304 billion in client assets as of December 31, 2018. For more information, please visit our website at www.nb.com.